FORECAST REPORT ROMANIA UNTIL 2016 This Forecast Report Was Written By

FORECAST REPORT ROMANIA UNTIL 2016 This Forecast Report was written by

EBUILD srl, Romanian member institute of EECFA

Mr Sebastian Sipos-Gug T: + 40 359 466 330 [email protected] www.ebuild.ro

Editor: EECFA Analytical approach and methodological background: Dr Aron Horvath – EECFA Research – ELTINGA Janos Gaspar – EECFA Research

www.eltinga.hu www.eecfa.com

ROMANIA © 2014 EECFA 02 04 _ Summary 05 _ Summary: Forecast revision 06 _ Forcast table 1 | macro figures 07 _ Forcast table 2 | construction summary figures 08 _ Residential construction | graph 09 _ Residential model | graph 10 _ Residential construction | graph, text 13 _ Forcast table 3 | residential figures 14 _ Office construction | graph 15 _ Office construction | graph, text 18 _ Retail and wholesale construction | graph 19 _ Retail and wholesale construction | graph, text 22 _ Industrial and warehousing | graph 23 _ Industrial and warehousing | graph, text CONTENT 25 _ Hotel construction | graph 26 _ Hotel construction | graph, text 28 _ Education- and Health-related construction | graph 29 _ Education- and Health-related construction | graph, text 31 _ Other non-residential | graph, text 32 _ Forecast table 4 | non-residential figures 33 _ Road construction | graph, text 36 _ Railway construction | graph, text 38 _ Other transport infrastructure | graph, text 40 _ Energy, pipeline, cable construction | graph, text 42 _ Public utility | graph, text 44 _ Forecast table 5 | civil engineering figures 45 _ Project data | table

30% of total construction 25% of total construction 45% of total construction Renovation ratio* 14% Renovation ratio 17% Renovation ratio 30% (2013) (2013) (2013)

Residental (at constant price) Non-Residental (at constant price) Civil engineering (at constant price) 2000 2016 2000 2016 2000 2016 *Renovation / Total Macro outlook until 2016 Population (20-29 age group) GDP Private consumption Industrial production Employment Income Finanacial conditions GREEN: POSITIVE GREY: NEUTRAL RED: NEGATIVE

Residential construction has been the major driver for of non-residential construction; nevertheless, ware- construction sector growth in 2014. Increased income, housing is still underperforming mainly due to the lack SUMMARY lower loan rates and continued government support of modern transportation infrastructure. However, it had a positive impact on the Romanian residential mar- might see a surge in the future if the situation improves. ket. This effect was further amplified by the resurgence of large scale speculative residential projects in 2014, Civil engineering has experienced shrinkage in 2014; and their number is to rise 2015 and 2016. However, though we expect the situation to improve in 2015 and residential transaction prices remain low and most beyond. Road construction continues to remain the ith a GDP evolution of +3.5% in 2013, Romania wit- transactions are for smaller homes, which can easily most influential section, covering one third of all civil Wnessed the second biggest growth rate in the EU., be mortgaged with government support and thus major engineering output. Although road construction was The performance for the year 2014 is also set to be growth, comparable to 2008, is not expected. expected to grow in 2014 and further drive the con- around 2%, with positive forecasts for 2015 and 2016 as struction market upwards, several factors prevented well (Source: Eurostat). Private consumption and real For 2015 and 2016, we expect non-residential construc- this from happening, including the cancellation and wages are also foreseen to undergo growth in 2015 and tion to continue to expand on all sections, with office delay of several key projects, lawsuits, budget cuts for beyond, with a positive impact on the investment and and industrial construction being the largest contrib- investments and a negative effect of the election pro- construction activities throughout the economy, while utors to this growth. Retail developments are still cess. The sector is prone to major growth in the future, the stable inflation rate should ensure growth to take limited, but might increase in the future as economic should these problems be at least partly addressed, place. The demographic evolution is having an overall growth will translate to purchasing power., Further- as all the major infrastructure sections (road, railroad, negative impact on the construction sector, with an more, infrastructure will improve since Romania has waterways, airports, public utilities) are underdevel- aging population, although this effect is still modest. Due a lower than average density of commercial space. oped or in need of repair. Many projects are ongoing or to the positive economic perspective, Romania will have Office and industry benefit from lower wages and high are about to be launched and funding could be achieved a growing market for investments into construction. accessibility to qualified personnel in the Romanian uni- with the help of European Union co-funding. versity centers and continue to be the biggest sections

Current forecast Previous forecast

Residental (at constant price) Non-Residental (at constant price) Civil engineering (at constant price) 2000 2016 2000 2016 2000 2016

n case of residential construction, our forecast has Our industrial, storage, hotel, education and health Islightly been adjusted in light of new data. The largest construction forecasts remain unchanged. SUMMARY: change was related to multi-unit construction where our forecast has been adjusted upwards due to the Civil engineering saw the largest revisions. In light of evolution of building permits and ongoing/planned the low performance in the first quarters of 2014 we FORECAST projects. have altered our forecast for 2014 from positive to negative, with continuing growth to be expected in 2015 Non-residential construction also saw some and 2016. The sectors most affected by this change REVISION adjustments. In case of office construction, in light of are road and railroad constructions. Due to various market developments, namely higher than expected political and legal issues, as well as the impact of the completion rates, we have updated our short-term election year, these sectors have underperformed forecast for 2014 upwards, however, the 2015 and (more information on the assumed causes can be 2016 forecast continues to be that of a small positive found in each corresponding chapter). Energy-related growth. For the retail sector, market contraction in construction has also been adjusted downwards; as 2013 and 2014 was more evenly distributed among several projects have been postponed or cancelled. the two years. By 2015 both forecasts converge on Nonetheless, in the long term we expect growth to the same expected output and we continue to foresee continue in this sector. a small negative evolution of this construction type.

ROMANIA

MACRO CONDITIONS AND DEVELOPMENTS 2006 2007 2008 2009 2010 2011 2012 2013 2014(F) 2015(F) 2016(F)

POPULATION (´000) 21 257 21 131 20 635 20 440 20 295 20 199 20 096 20 020 19 959 19 909 19 869

POPULATION AGE GROUP 20-29 YEAR (´000) 3 104 3 061 2 877 2 813 2 774 2 720 2 653 2 618 2 594 2 557 2 508

GDP GROWTH (%) 7.9 6.3 7.3 -6.6 -1.1 2.2 0.7 3.5 2.0 2.4 2.8

PRIVATE CONSUMPTION GROWTH (%) 12.9 12.0 9.0 -10.4 -0.2 1.1 1.1 0.9 3.8 2.3 2.4

RETAIL TURNOVER (%) 23.1 20.6 18.2 -9.3 -7.3 -1.2 4.2 1.0 6.0 3.0 3.0

INDUSTRIAL PRODUCTION (%) 9.9 10.1 2.7 -5.3 5.1 7.7 2.8 7.1 5.5 3.0 3.5

EMPLOYMENT (´000) 9 313 9 353 9 369 9 243 9 239 9 138 9 263 9 247 9 290 9 355 9 428

REAL WAGE GROWTH (%) 9.0 14.7 16.5 -1.5 -3.7 -1.9 1.0 0.8 2.8 1.3 0.7

CONSUMER PRICE INDEX (%) 6.6 4.8 7.9 5.6 6.6 5.8 3.3 4.0 2.2 3.1 3.0

INTEREST RATE ON NEW HOUSING LOANS (% P.A.) 10.0 9.7 11.0 12.6 11.7 9.5 8.0 7.5 5.9 6.3 6.0

1 EUR IN RON 3.5 3.3 3.7 4.2 4.2 4.2 4.5 4.4 4.5 4.4 4.4

VALUE VALUE GROWTH RATES AT CONSTANT PRICE (%) ROMANIA (RON MLN) (EUR MLN) CONSTRUCTION MARKET SIZE 2013 2013 2006 2007 2008 2009 2010 2011 2012 2013 2014(F) 2015(F) 2016(F) AND DEVELOPMENT

NEW 18 993 4 297 - - - -26.2 -14.3 -21.3 11.0 -7.0 6.6 5.0 1.1 RESIDENTIAL RENOVATION 3 092 700 - - - -4.7 -16.2 5.4 -1.2 28.0 2.2 4.1 0.2 TOTAL 22 085 4 997 47.8 50.9 11.2 -24.6 -14.4 -18.9 9.6 -3.3 6.0 4.9 1.0 NEW 14 953 3 383 - - - -17.9 -13.6 14.0 -22.4 6.9 6.6 2.5 2.1 NON-RESIDENTIAL RENOVATION 3 063 693 - - - -11.9 -31.2 16.9 -11.0 14.6 2.8 4.8 3.6 TOTAL 18 016 4 076 21.3 18.1 33.0 -17.0 -16.6 14.4 -20.7 8.1 6.0 2.9 2.4 NEW 33 946 7 680 - - - -23.1 -14.0 -7.1 -5.5 -1.4 6.6 3.9 1.6 BUILDING RENOVATION 6 155 1 392 - - - -8.9 -24.8 11.5 -6.6 21.0 2.5 4.5 1.9 CONSTRUCTION TOTAL 40 101 9 073 35.5 37.2 19.0 -21.6 -15.4 -5.0 -5.6 1.5 6.0 4.0 1.6 NEW 23 236 5 257 - - - -5.5 -2.1 -1.1 -9.6 3.0 -8.9 9.3 6.1 CIVIL ENGINEERING RENOVATION 9 723 2 200 - - - -11.1 -11.5 2.6 4.2 4.6 -2.2 4.3 1.1 TOTAL 32 959 7 457 24.1 26.8 27.0 -7.1 -4.7 -0.2 -6.0 3.5 -6.9 7.7 4.6 TOTAL CONSTRUCTION OUTPUT 73 060 16 529 31.1 33.4 21.8 -16.3 -11.0 -2.9 -5.8 2.4 0.2 5.6 2.9

55% of building construction RESIDENTAL CONSTRUCTION is residential (2013)

RON 35bln RON 35bln

) e c i r p

RON 30bln 3 n RON 30bln 1 io 0 at 2 m t ti a s ( e t d u n p e t tr Forecast u RON 25bln o rm RON 25bln l e a -t ti g n n e o id L 22.1 s e (RON bln) R RON 20bln RON 20bln 5.0 (EUR bln) RON 15bln RON 15bln

RON 10bln RON 10bln

RON 5bln RON 5bln

RON 0bln RON 0bln

24% 47% 116% 9% 12% 48% 51% 11% -25% -14% -19% 10% -3% 6% 5% 1% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

RON 40bln RON 40bln

RESIDENTIAL IN THE LONGER RUN WE THINK THAT OUTPUT TENDS TO DIRECT TOWARDS ITS LONG-TERM TREND (THE GRAPH ON THE BOTTOM RIGHT CORNER), DEFINED BY INCOME AND DEMOGRAPHIC TRENDS. IF MODEL THEY PLAY A HUGE ROLE, GOVERNMENTAL INTERVENTIONS ARE ALSO CONSIDERED. RON 30bln RON 30bln

RON 20bln RON 20bln

THE MODEL SUGGESTIONS ARE EVALUATED BY THE NATIONAL RESEARCHER TAKING INTO CONSIDERATION INTRA-YEAR FIGURES LIKE PERMIT, COMPLETION, DOTTED LINES SHOW WHAT PRODUCTION INDEX, REGULATORY CHANGES, ETC. THE MODEL WOULD HAVE SHORT TERM FIGURES ARE SET SO. RON 10bln SUGGESTED ABOUT THE RON 10bln NEXT 3 YEARS

RON 0bln RON 0bln 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 INDICATORS CONSIDERED BY THE MODEL

119 7%

56 4%

2002 2014 2002 2014 2000 2016 2001 2016 PERMIT ('000 HOMES) PROFIT MARGIN (HOME PRICE/CONSTRUCTION COST) REAL INTEREST RATE ON NEW MORTGAGE LOANS COMBINED TREND OF DEMOGRAPHY AND INCOME Permit is now definitely over its bottom. We expect Another encouraging factor is that prices are also Very favorable interest rate environment is also Fundamental drivers of the sector keep the long term 10% growth in 2014. The big story is in the multi-unit bottoming out. Deflating costs (which could prevail supportive for the sector. Nominally it is the lowest trend stable. Demographic tendencies are unfavorable dwelling segment, where permit increased by around because of the cheaper energy cost) and stable prices rate since we start collecting data (2000). Record low but income expectations (combination of employment 50% (in M1-M9 2014) could increase developers’ motivation. inflation pushes real rates a bit higher, though. and real wage) are optimistic.

s g n li e w d f o r 47 be um l n Tota 33 buildings lling we 1 d Completion ('000 dwellings) 2000 2016

esidential construction activity in Romania is con- Home completion has experienced a drop in 2013 when Rtinuing its upward trend, and should remain so until compared to 2012, despite a promising start. For the RESIDENTIAL at least 2016. The continuing reduction in loan interest first two quarters of 2014, home completion has been rates and the increase in real income should fuel this up with 4.2% against the same period of 2013 (meas- growth for the next years. There have been some minor ured in the number of dwellings) and we predict this CONSTRUCTION adjustments compared to our last forecast; however trend to be maintained throughout the year. For the we still predict positive growth in 2015 and 2016. years 2015 and 2016 we expect completion levels to remain relatively steady, above the 2014 level, with In 2014 the evolution of building permits for dwellings growth occurring mostly in the multi-unit buildings in the first 8 months is showing a sizeable growth in section. the number of permits, with a 10% increase in number; however, this is accompanied by a decrease in the Most completion used to take place in the rural area, average useful area, which is down to 124 sqm. however, for the first two quarters of 2014 completion started to favor the urban environment. This, coupled Multiunit buildings have seen a major increase (40%) with the increase in multiunit buildings, is an indicator in the number of permits issued for the first 8 months that speculative residential development is returning, of 2014 compared to the same period of 2013. For a market having been dormant since 2008, with most 2015 the useful area issued in permits is expected to projects put on hold, partially completed or cancelled. decrease slightly, and so the growth rate to slow down. An evidence for this fact is that a number of residential development projects are already ongoing or are

ROMANIA Residential construction © 2014 EECFA 10 Vista Residential Concept phase 4, Bucharest, sector 4, 22 000 sqm One Charles de Gaulle, Bucharest, sector 1, Condominium, Iasi, North-East region, 5 600 sqm Onix Residence phase 2, Bucharest, sector 6, 6 000 sqm Vista Residential Concept phase 3, Bucharest, sector 4, 25 000 sqm Condominium, Oradea, North-West region, 8 000 sqm Flamingo Park faza I, Ostratu, Bucharest-Ilfov region, 6 250 sqm Condominiums, Timisoara, West region, 50 000 sqm Metropolitan Residence - Aparatorii Patriei, Bucharest, sector 4, 8 700 sqm Condominiums, Craiova, South-West region, 182 000 sqm Sunset Lake Residential, Bucharest, sector 1, 20 000 sqm Vista Residential Concept phase 2, Bucharest, sector 4, 18 000 sqm The Park, Bucharest, sector 4, 20 000 sqm Class Park Residence, Targoviste, South region, 24 000 sqm Park Residences 5, Bucharest, 17 000 sqm Puskin 11 condominium, Bucharest, sector 1,

2014 2015 2016 2017 Ongoing and planned Residential construction projects SOURCE: IBUILD.INFO

planned for the near future (most of them being con- long run, as in the short term funding from 2014-2020 dominiums), totaling at more than 400 thousand sqm EU programs for this purpose is not yet available. to be completed in 2015 and 2016, although delays are RESIDENTIAL still common and are to be expected. Real estate prices are starting to stabilize, the price index (IMO calculated by imobiliare.ro) showing values Access to amenities is still an issue, as mentioned in over those of the equivalent month of 2013 for the third CONSTRUCTION the previous report, many of the homes completed lack quarter of the year 2014, after having a decrease on the access to water, sewage and central heating, creating year-to-year values on the first quarter. This is a posi- a market for these infrastructure developments in the tive sign, if not of growth at least of stabilization of the future. market prices that have declining steadily since 2008.

Renovation activity in the residential sector is an area Several main factors continue to influence the demand with great potential, as the stock of homes in Romania for residential construction in Romania: population is quite old. As previously mentioned,around 2/3 of the dynamics, income growth, interest rates for loans and homes in Romania are older than 35 years, a situation mortgages and public policy. that leads to a large potential market. Most of these homes lack proper thermal insulation (estimated at Population dynamics has a negative impact on the 2.4 million apartments in a Ministry report), and this demand for new construction. As Romania will expe- market alone is estimated by the Ministry of Regional rience a population decrease (according to Eurostat Development to be EUR 1.5 billion yearly, if supported forecasts), mainly due to emigration to other EU states, by proper government policy and partly covered by EU demand for new construction should diminish. Depend- funding. However, this is likely to happen only in the ing on the age and situation of the emigrants, however,

ROMANIA Residential construction © 2014 EECFA 11 the situation is more complex. Temporary migration is new construction) and to loans in locally currency have frequent, with Romanian middle aged persons working quickly become the standard for new home construc- for a set period of time outside Romania with the pur- tion. Around 2/3 of real estate demands are done in pose of returning and investing their gains. This can the EUR 60000 or less bracket (according to imobili- lead to a demand for residential construction. Younger are.ro, one of the main advert platforms for real estate migrants however tend to permanently emigrate and transactions). this causes a decrease in demand. For 2014, until October 2014, 20500 guarantees were Income growth, in terms of real wages, has started offered, totaling EUR 736 million, which have led to the to be noticed since 2012. Prior to this year, wages had government raising the budget for the program with an dropped for 3 consecutive years. As a result of the additional EUR 90 million to meet demand. The govern- good economic result of 2013, we expect real wages to ment has pledged to continue the program as long as increase in 2014 and in the following years. According there is demand for it (according to The National Fund to the Romanian National Forecast Commission official for Guaranteeing Credits for Small and Medium Enter- data, this increase should amount to 2.8% in 2014 and prises - FNGCIMM). around 1% per year afterwards. Minimum wage has also been raised and is being planned to be raised further. A recent change to the program is the inclusion of the possibility for Romanian citizens living outside Roma- Interest rates for housing loans are continuing their nia to benefit for the program, with EUR 5.6 million descending trend, for RON, as predicted. In EUR the allocated for this purpose. RESIDENTIAL trend is relatively stable, however, the relative impor- tance of EUR based loans when compared to RON based loans is decreasing, when it comes to mortgages. This has been an effect of the “Prima Casa” program, as CONSTRUCTION TABLE – “PRIMA CASA” PROGRAM SUMMARY discussed in the previous report. FINANCING YEAR NUMBER OF USERS Public policy is influencing demand for residential (MILLION EUR) construction in many ways; though several issues are of greater impact: the “Prima Casa” program, ROBOR 2009 12.000 495 index and tax rates. 2010 23.000 935 The “Prima Casa” (Eng. “First Home”) is designed to 2011 19.000 740 stimulate the residential construction market and at 2012 27.000 1 010 the same provide assistance for first home owners. The government does this by providing a guarantee on 2013 24.500 900 the loan, under the condition that banks use the ROBOR TOTAL GRANTED (2009-2013) 105.500 4 080 Index in establishing the interest rates. The program 2014* 25500* 826*

limitations regarding the maximum value of the guar- FNGCIMM SOURCE: antee (EUR 60000 for purchasing and EUR 70000 for *ESTIMATED

ROMANIA

RESIDENTIAL CONSTRUCTION 2006 2007 2008 2009 2010 2011 2012 2013 2014(F) 2015(F) 2016(F)

1 DWELLING BUILDINGS 29.5 33.8 33.3 37.0 35.5 33.5 32.1 32.2 33.4 31.0 30.4 COMPLETED DWELLINGS 2+ DWELLING BUILDINGS 10.1 13.5 33.9 25.5 13.3 11.9 11.9 11.4 13.2 16.7 16.4 (´000 UNIT) TOTAL 39.6 47.3 67.3 62.5 48.8 45.4 44.0 43.6 46.6 47.7 46.8

1 ROOM 3.0 3.9 5.3 5.3 3.3 2.8 3.2 2.5 3.0 3.1 3.0

2 ROOM 8.6 8.7 16.7 14.7 9.2 8.4 8.6 8.9 10.3 11.0 10.3 COMPLETED DWELLINGS (´000 UNIT) 3+ ROOM 28.0 34.7 45.2 42.5 36.4 34.1 32.3 32.2 33.3 33.6 33.5

TOTAL 39.6 47.3 67.3 62.5 48.9 45.4 44.0 43.6 46.6 47.7 46.8

CONSTRUCTION PERMITS (´000 DWELLINGS) 66.8 87.6 118.6 65.9 55.3 49.2 49.8 51.2 55.5 53.5 52.4

RESIDENTIAL STOCK (MILLION DWELLINGS) 8.23 8.27 8.33 8.38 8.43 8.45 8.51 8.55 8.58 8.61 8.65

HOME OWNERSHIP RATE (%) 97.7

18% of building construction OFFICE CONSTRUCTION is oce (2013)

RON 10bln RON 10bln

d estimation Long-term tren RON 8bln Cycle RON 8bln Forecast 7.1 (RON bln)

RON 6bln 1.6 RON 6bln (EUR bln)

Oce output (at 2013 price)

RON 4bln RON 4bln

RON 2bln RON 2bln

11% 22%21% 45%-5% 104%3% 6%5% 14%10% 48%1% 74%49% 12%7% -17%-24% -14%2% -20%-19% -3%8% 8%3% 1%8% 15%1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

106

Permit ('000 m2) 2002 2014(e)

ffice construction has seen a revitalization in 2013, 2013 and in 2012. This would suggest growth to slow Oafter three years of decline, and this will likely down in 2015 and in 2016. OFFICE continue in 2014 and remain on an upward trend into 2015 and 2016. The demand for new office space Despite the decrease in permit data, completion remains high, especially in the capital and major cities, remains on the rise. Just in Bucharest 120 000 sqm CONSTRUCTION as Romania continues to be an attractive market for are estimated to have been completed in 2013, and offshore activities. Economic growth is also boosting completion for the first semester of 2014 amounted to demand for local services. 68 500 sqm (GLA – Source CBRE Research, Jones Lang LaSalle), with a total estimate of 132 000 sqm for 2014. In light of the market developments, namely the higher than expected completion rates, we have revised our In 2014, six major projects have been completed in short-term forecast for 2014 upwards, however, the Bucharest, totaling at a GBA of 240 000 sqm. Besides 2015 and 2016 forecast continues to be that of a small functionality, the developers of these projects have positive growth. also sought to achieve high standards of sustainability through BREEAM or LEED certifications. For instance, Permits for office construction continue their down- the Green Gate project (GBA 49 500 sqm), the largest ward trend for the last few years, although this is more project completed in 2014, includes facilities such as noticeable for the permitted useful area and not for the vertical gardens, a living courtyard, energy efficient number of projects, which has dropped slightly in the elevators, rain water recycling and many other “green” first three quarters of 2014 against the same period in features. This tendency is expected to continue in the

ROMANIA Office Construction © 2014 EECFA 15 Optica Business Park, phase 3, Timisoara, West region, 12 000 sqm Globalworth Campus, Bucharest, sector 2, 105 000 sqm Oregon Park phase 1, Bucharest, sector 2, 80 000 sqm Oce building, Timisoara, West region, 17 000 sqm Cluj Business Center, phase 2, Cluj-Napoca, North-West region, 31 000 sqm Coresi Business Park, phase 2, Brasov, Center region, 7 200 sqm The Oce, phase 3, Cluj-Napoca, North-West region, 31 600 sqm Anchor Plaza Metropol ﬁnishing works, Bucureşti, 58 000 sqm Oce Building at Marriott Bucharest Grand Hotel, Bucharest, sector 5, Buzesti Center, Bucharest, sector 1, 30 000 sqm Orhideea Towers, Bucharest, sector 6, 77 500 sqm Hermes Business Campus building C, Bucharest, sector 2, 50 000 sqm United Business Center 5, Iasi, North-East region, 18 000 sqm The Oce, phase 2, Cluj-Napoca, North-West region, 31 600 sqm The Landmark, Bucharest, sector 1, 26 500 sqm Green Court, phase 2, Bucharest, sector 2, 12 levels AFI Park Phase 4 and 5, Bucharest, sector 6, 40 000 sqm E.ON TOWER, Targu Mures, Center region, 15 000 sqm Business Center, Brasov, Center region, 18 000 sqm Bucharest One, Bucharest, sector 2, 69 000 sqm Tradecenter, Oradea, North-West region, 16 000 sqm Rogerius Business Center, Oradea, North-West region, 12 200 sqm City Business Centre, building E, Timisoara, West region, 15 000 sqm AFI Park Phase 3, Bucharest, sector 6, Unirii View, Bucharest, sector 3, 27 000 sqm OFFICE 2014 2015 2016 2017 Ongoing and planned Oce projects CONSTRUCTION SOURCE: IBUILD.INFO future, with most projects showing an increasing con- 600 sqm), Oradea (28 200 sqm), Ploiesti and Targu cern for sustainability. Mures. A further 98 800 sqm are to be completed in 2016 in the cities of Brasov, Cluj Napoca and Timisoara. Several major office buildings were constructed in 2014 outside Bucharest too. In Cluj Napoca two pro- Regarding the real estate office market, the first jects were completed totaling at a GBA of 49 500 sqm, semester of 2014 has shown a major growth compared and in Timisoara one project of GBA 14 000 sqm. to the corresponding period in 2013 (that had itself registered a significant growth), according to CBRE For the next years, ongoing and planned projects would Research. More than 2/3 of the activity on the market, deliver a GBA of 283 000 sqm in Bucharest during the however, comprised relocations, continuing the trend year 2015 and a further GBA 327 000 sqm in 2016. for companies to relocate relatively frequently in order to maximize their space usage, and to benefit from the For 2015, outside Bucharest, GBA 180 000 sqm are pre- higher class of office spaces as they become available. dicted to be delivered based on ongoing and planned This is also made possible by the typical lease period projects: in Brasov, Cluj Napoca (61 512 sqm), Iasi (32 of 3-5 years and various tenant offers, such as rent

ROMANIA Office Construction © 2014 EECFA 16 free months. Vacancies continue to remain at around attractive market for services such as IT and Commu- the 15% mark, and rents are anticipated to remain sta- nications. Major university centers, such as Bucharest, OFFICE ble, according to the CBRE Research and Jones Lang Cluj Napoca, Timisoara, Brasov and Iasi have a great LaSalle reports. potential of development, as the number of graduates ensures a steady supply of qualified personnel. The CONSTRUCTION Despite the increase in construction output, vacancy focus continues to shift away from Bucharest, after an rates are not expected to rise considerably, as most initial period of concentrated development. This shift new spaces are usually pre-leased in ratios exceeding is natural as international companies have usually 50% and reach the average occupancy rates quite fast started their operations in Romania in the capital and after completion. are now expanding to the rest of the country and/or looking for more cost efficient solutions. The reason for Employment in the office sector is on an upward trend, this is that salaries outside Bucharest can be as low as and has been so for the last 5 years, since Romania is an 50% of those within.

3% of building construction RETAIL AND WHOLESALE CONSTRUCTION is commercial (2013)

RON 5,00bln RON 5,00bln

Commercial output (at 2013 price)

RON 3,75bln RON 3,75bln Cycle

RON 2,50bln RON 2,50bln

Long-term trend estimation

Forecast RON 1,25bln 1.2 RON 1,25bln (RON bln) 0.3 (EUR bln)

RON 0,00bln RON 0,00bln

21% 45% 104% 5% 10% 48% 49% 12% -24% -14% -19% -3% 3% 8% 15% 35% 15% 47% 32% 8% 47% 16% 55% -46% -10% 9% -44% -8% -6% 0% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

400

Permit ('000 m2) 2009 2014(e)

onstruction levels in retail and wholesale buildings Following the completion of 230 000 sqm GBA in Cremains low, with forecasts indicating a drop of major projects in 2013, in 2014 the completion of such RETAIL AND activity from 2014 up to and including 2016. Despite large-scale projects has been low, with only two units increased real wages and economic growth, demand recorded:Vulcan Value Center in Bucharest and Targu WHOLESALE for new retail spaces stays low. Jiu Shopping City in Targu Jiu. Our previous forecast has been slightly adjusted, Several projects are currently undergoing, however. In the market contraction in 2013 and 2014 being more Bucharest eight major projects are under construction, CONSTRUCTION evenly distributed among the two years. By 2015 both amounting to 300 000 sqm GBA of new construction forecast converge on the same expected output and and another 100 000 sqm GBA of renovation. They we continue to foresee a small negative evolution in are scheduled for completion in late 2014 and 2015, this construction type. the most notable project being Mega Mall Bucharest, which, at 220 000 sqm GBA, would become one of Permits for these construction types have somewhat the largest malls in the country. A further 180 000 increased as number of projects in the first 9 months sqm GBA are to be completed in 2016 in just one pro- of 2014, and while the useful area permitted is smaller ject, namely Parklake Plaza, 60% of which is already than the equivalent area for the first 9 months of 2013, pre-leased. it is on an upward trend, showing signs of recovery towards 2012 levels. Numerous other projects are ongoing or planned for construction outside Bucharest during 2015, with 100 000 sqm of GBA in the cities of Brasov, Bacau,

ROMANIA Retail and wholesale construction © 2014 EECFA 19 Victoria City Lifestyle Retail Center phase 2, Bucharest, sector 1, 15 000 sqm Dedeman store, Hunedoara, West region Korona Shopping Center, Brasov, Center region, 100 000 sqm Kaufland Hypermarket, Bucharest, sector 5, 16 000 sqm Kaufland Hypermarket, Bacau, North-East region, 6 500 sqm Dedeman store, Oradea, North-West region, Kaufland and Comercial Galeries, Sibiu, Center region, 2 9 ha Brasov Shopping City, Brasov, Center region, 80 000 sqm Timişoara Plaza, Timisoara, West region, 60 000 sqm Veranda Shop & Stay Obor, Bucharest, sector 2, 66 700 sqm Dedeman store, Timisoara, West region, 12 000 sqm Dedeman store, Suceava, North-East region, 14 200 sqm City Park Mall, Constanta, South-East region, 46 000 sqm, extension Victoria City Lifestyle Retail Center, Bucharest, sector 1, 68 000 sqm Dedeman store, Bucharest, sector 3, 15 000 sqm Parklake Plaza, Bucharest, sector 3, 180 000 sqm Kaufland 3, Timisoara, West region, 5 100 sqm Kaufland, Bacau, North-East region, 6 000 sqm Plaza Romania, Bucharest, sector 6, 40 000 sqm, renovation Bucharest Mall, Bucharest, sector 3, 37 000 sqm, renovation Auchan Drumul Taberei, Bucharest, sector 6, 30 000 sqm Coresi Shopping Center phase 1, Brasov, Center region, 55 000 sqm Mega Mall Bucharest, Bucharest, sector 2, 220 000 sqm Kaufland Hypermarket, Bucharest, sector 2, 32 000 sqm Mall Unirii 2, Bucharest, sector 3, 30 000 sqm, renovation

2014 2015 2016 2017 Ongoing and planned Retail projects RETAIL AND SOURCE: IBUILD.INFO Timisoara and Suceava. Most projects planned for Retail turnover surged in the first three quarters of 2015 are hypermarkets and shopping centers, with 2014 against the same period in 2013 across almost WHOLESALE Kaufland and Dedeman continuing their expansion. all sections of the sector, with the largest growth (30%) in the internet and mail order section, and decreases For 2015, the current ongoing and planned projects in the sale of non-food in non-specialized stores and CONSTRUCTION would deliver a total of 586 000 sqm GBA country-wide, other products sold in specialized stores. The increase and for 2016 the completion is estimated at 480 000 in e-commerce could reduce demand for new retail sqm of GBA. construction, however, at least at the moment, even large e-commerce based companies, such as eMAG, Employment in retail and wholesale has stayed maintain showrooms in shopping centers across the relatively constant in 2013, reflecting the weak per- country. formance of the sector in previous years. We expect employment to increase at a modest rate as new con- Hypermarkets, supermarkets and proximity stores structions are completed. While construction output is are continuing their expansion in Romania, with predicted to decrease, the need for new employees is Kaufland, Carrefour, Metro and other retailers contin- explained by the increased complexity of retail space, uing to expand aggressively. Carrefour is planning to especially that of shopping centers. introduce their Superco concept, a store between dis- counter and cash&carry, with sales areas between 1

ROMANIA Retail and wholesale construction © 2014 EECFA 20 500 and 2 000 sqm, which is currently present only in fic into the center and to individualize it. They include RETAIL AND Spain. They have started recruiting for new stores in pools, playgrounds and even rollercoasters. several Romanian cities. The Romanian retail construction market remains WHOLESALE This is also true to the DIY sector, which has seen fragmented, with some areas experiencing high some major changes last year. Several DIY operators vacancy rates, especially in non-prime locations and have exited the market, bauMax by selling its assets high turnover of tenants, while some areas have been CONSTRUCTION in Romania and OBI closing its operations in Romania. increasing demand. While the overall retail density in Previously Bricostore and Praktiker had also been Romania remains below par when compared to the sold, and this created the opportunity for other oper- European average (according to Cushman & Wakefield), ators to expand, as evidenced by Dedeman’s opening for the time being, parts of the market seem saturated, four stores in 2013 and 2014 and planning to open at for instance in the city of Oradea vacancies have been least four new ones in 2015 and 2016. common, however, development continues to this day.

Shopping centers carry on with their transformation In contrast, smaller cities have a very low offer of into entertainment centers, with a large area of each retail spaces. Nevertheless, the lack of proper infra- project dedicated to various venues. Cinema centers structure, coupled with lower than average wages, is have become mandatory, and alongside them various hindering further development into these potential other attractions are designed to try to lure more traf- markets; most projects in these areas being of the supermarket and proximity store type.

13% of building construction is industrial INDUSTRIAL AND WAREHOUSING and warehouse (2013)

e) ric p 13 20 t a RON 7bln ( RON 7bln t u p t u o Cycle

e s u o Long-term trend estimation h e r a w

d n RON 6bln a RON 6bln

l a i r t Forecast s u d n I 5.1 RON 5bln (RON bln) RON 5bln 1.2 (EUR bln)

RON 4bln RON 4bln

RON 3bln RON 3bln

39% 36%21% -13%45% 104%1% -13%5% 10%9% 37%48% 49%8% -30%12% -27%-24% -14%59% -22%-19% -3%9% 4%3% 4%8% 15%4% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Log Center Brasov, Feldioara, Center region, 60 000 sqm Log Center Sibiu, Sura Mica, Center region, 90 000 sqm Nextcity bycicle factory, Haţeg. West region, 34 000 sqm Mega Image Logistic Center, Ilfov, Bucharest-Ilfov region, 30 000 sqm Martur Automotive Factory phase 1, Cateasca, South region, 17 000 sqm Bosch auto parts production plant, phase 2, Jucu, North-West region, 39 700 sqm Wienerberger brick factory, Iasi, North-East region, 115 000 sqm Log Center Bucharest, Mogosoaia, Bucharest-Ilfov region, 148 000 sqm Targoviste Business Park, Târgovişte, 17 300 sqm Logistic center, Baia Mare, 38 000 sqm Tetarom IV Industrial Park, Cluj, North-West region, 850 000 sqm Star Transmission (Daimler) assembly hall, Sebes, Center region, 67 000 sqm Bistrita South Industrial Park, Bistrita-Nasaud, North-West region, 180 000 sqm Holzindustrie Schweighofer wood processing plant, Covasna, Center region, 72 000 sqm Emerson factory, phase 1, Oradea, North-West region, 27 000 sqm Graells & Llonch Industrial Park Turda, Turda, North-West region, 235 000 sqm

2014 2015 2016 2017 Ongoing and planned Industrial projects

SOURCE: IBUILD.INFO

ndustrial and warehousing construction is presumed also has expansion plans for its Oradea branch, hav- INDUSTRIAL AND Ito continue its positive growth rate into the next years, ing bought an industrial space of 254 000 sqm in the with most projects being build-to-order. The volatility Eurobussines Parc for EUR 2 million, where it plans to of this sector in the past remains a factor of uncer- finalize its EUR 80 million investments by 2018 and cre- WAREHOUSING tainty, however, continuous investment is hoped for, ate 2500 new jobs in the near future. In October 2015 since Romania has still a lot of development potential, the investment was approximately 10% completed. qualified personnel and lower wages than most other EU states. Completion has been lower than expected as several projects were slightly delayed and their launch date Regarding our previous forecast, we have adjusted the moved to H1 2015. 2013 estimate based on new information, although we maintain our opinion that this sector should experi- For 2015, more than 300 000 sqm GBA are to be com- ence a constant growth until 2016. pleted in industrial spaces, the most notable projects being the Wienerberger brick factory in Iasi (115 000 Completed projects in this sector continued to take sqm), the Holzindustrie Schweighofer wood processing place in the Center and Nord-West regions of Roma- plant in Covasna (72 000 sqm) and the Star Transmis- nia, with three major projects completed so far in 2014, sion (Daimler) assembly hall in Sebes (67 000 sqm). namely the Ruck factory in Tarnaveni, the Trelleborg parts factory in Dej and the Emerson factory in Cluj At the same time, in 2015, we expect the completion of totaling 51 700 sqm GBA of industrial space. Emerson industrial parks to add 1.2 million sqm to the existing

ROMANIA Industrial and warehousing © 2014 EECFA 23 stock of available industrial space in the North-West with a 2% value in 2014 and reaching 2.8% in 2016, region. according to the Directorate General for Economic and Financial Affairs of the EU. This, coupled with a stable For 2016, the number of planned industrial projects inflation between 2-3%, could have a positive effect on is still relatively small, with only 115 000 sqm to be the demand in the sector. delivered. However, due to the tendency of projects to be build-to-order and owing to the generally low con- Industrial production has maintained its upward trend struction period, we await this figure to increase and of the last 4 years, with manufacturing continuing to to reach comparable levels with the 2015 ones. perform better than sector average. Industrial construction should continue to grow under the effects of Logistic spaces saw no new major completions in 2014, increased production, as companies would be encour- INDUSTRIAL AND and for 2015 development plans stay modest, with aged to invest and expand. 55 000 sqm in three ongoing and planned projects in the North-West region. For 2016, however, the logis- Warehousing remains an underperforming sector. WAREHOUSING tic construction market might see a recovery, since According to the DTZ Research Global Occupancy around 328 000 sqm are planned to be completed by Costs - Logistics report for 2013, when it comes to then, with 148 000 sqm only in one project, Log Center logistics occupancy costs, Bucharest is well under the Bucharest, in Mogosoaia. global and European average. Costs are expected to grow lower than the European average, and in fact Employment in the industry sector is on the steady even lower than the European average inflation. Yet, growth and is set to continue as this sector develops, this major potential cannot be exploited properly, since with real wages on small but positive trend. Neverthe- potential investors have to face issues regarding the less, productivity is expected to increase at a higher underdeveloped and aged transport infrastructure. rate, especially manufacturing – estimated growth We expect demand to increase substantially in the long rates of around 3% yearly until 2018, according to the run, as infrastructure develops. National Forecasting Commission. Vacancy rates for industrial spaces continue to remain After reaching a 3.5% growth in 2013, Romanian GDP low, under the 10% mark for Bucharest (according to is forecasted to grow at an accelerated rate, starting the Jones Lang LaSalle report), as construction continues to be built to order.

2% of building construction HOTEL CONSTRUCTION is hotel (2013)

RON 1,2bln RON 1,2bln

Cycle Long-term trend estimation

Forecast RON 0,9bln 0.9 RON 0,9bln (RON bln) 0.2 (EUR bln)

RON 0,6bln Hotel output (at 2013 price) RON 0,6bln

RON 0,3bln RON 0,3bln

-55% 21% 78%45% 104%-48% -5%5% 58%10% 12%48% 32%49% -41%12% -10%-24% -14%49% -13%-19% -3%3% 3% 3%8% 15%3% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hilton Garden Inn, Craiova, South-West region, 5 890 sqm, 108 rooms Hotel Ark 5 stars, Brasov, Center region, 6 400 sqm Hotel Gemi Center, Arad, West region, 5 000 sqm Hilton Garden Inn, Constanta, South-East region, 10 000 sqm, 145 rooms Blaxy Premium Resort & Hotel, South of Constanta, Black Sea, 35 000 sqm Hotel Hampton by Hilton, Iasi, North-East region, 7 000 sqm, 123 rooms, renovation Hotel Mamaia, Constanta, South-East region, 8 000 sqm

2014 2015 2016 2017 Ongoing and planned Hotel projects

SOURCE: IBUILD.INFO

e are holding our position that construction in the was initially scheduled for completion in 2014), Hilton Whotel sector will sustain a steady growth into 2016. Garden Inn in Constanta and Hotel Ark in Brasov, total- HOTEL This is evidenced by an increased touristic activity, ling at 31 400 sqm GBA. with a positive trend on arrivals and overnight stays as well as on occupancy rates. However, market growth is not without difficulty, as CONSTRUCTION several projects have been postponed and Hotel Permits issued for hotels and similar buildings have Courtyard by Mariott in Bucharest has been canceled. continued their upward trend into 2014, and permitted useful area has been 8% higher for the first 10 months For 2016, a number of large-scale projects are planned, of 2014 over the similar months of 2013. This provides amounting to more than 65 000 sqm GBA. The trend further evidence for future growth in hotel construc- is for hotels to be built alongside other major invest- tion sector. ments, such as retail centers (Hotel International in Iasi inside Palas), near or in business parks and along- In 2014, 121 units have been completed (according to side office buildings. NSI data), including 27 new hotels and 67 agro touristic units, increasing the housing capacity of Romania with A growing sector is also represented by small units 5 500 beds. handling rural tourism. Usually budget orientated bed and breakfasts with average comfort ratings. Several projects are ongoing or planned and scheduled to be completed in 2015, including Hotel Mamaia Business remains the main purpose for overnight in Constanta, a Hotel Hampton by Hilton, in Iasi (that stays in hotels, especially in major cities, almost 1

ROMANIA Hotel construction © 2014 EECFA 26 million foreign visitors coming yearly in Romania for have improved in the first 10 months of 2014 and over- business purposes and using the hotel system. None- night stays have been on a positive trend since 2010, HOTEL theless, there is an increase in medical tourism, as and as such, demand is set to linger. Romania has lower prices for certain medical proce- dures, mainly dental and plastic surgery. If medical The unexploited touristic potential of Romania stays CONSTRUCTION infrastructure improves, this is expected to continue high, with the National Authority for Tourism investing to rise. EUR 25 million in a multi-year campaign to promote Romania and many efforts being directed towards Vacancy rates in Romanian hotels stay among the financing small rural bed and breakfasts that practice highest ones in the EU, at almost 75%, however, they rural tourism.

5% of building construction is education- HEALTH- AND EDUCATION- and health-related (2013) RELATED CONSTRUCTION e) ric 3 p 01 t 2 (a RON 2,5bln ut RON 2,5bln tp u o Long-term trend estimation d e t la e r - h Forecast lt a e H d n RON 2,0bln a RON 2,0bln - 1.9 n io (RON bln) t a c u d E 0.4

Regime Switch (EUR bln)

RON 1,5bln RON 1,5bln

RON 1,0bln RON 1,0bln

RON 0,5bln RON 0,5bln

21% 45% 104% 5% 10% 48% 49% 12% -24% -14% -19% -3% 3% 8% 15% 27%2000 -16%2001 56%2002 20031% -46%2004 94%2005 38%2006 13%2007 20084% -36%2009 20%2010 -29%2011 26%2012 11%2013 20145% 20153% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Regional Oncology Center, Timisoara, West region, 22 000 sqm Pediatric hospital, Ploiesti, South region, 10 000 sqm, renovation City Hospital, Mioveni, South region, 15 000 sqm Emergency Hospital Petrosani, Petrosani, West region, 15 800 sqm, renovation Dr.Fogolyan Kristof County Hospital, Covasna, Center region, 14 700 sqm, renovation Foisor Hospital, Bucharest, sector 2, 13 000 sqm, extension Sf. Pantelimon Emergency Hospital, Bucharest, sector 2, 20 000 sqm, renovation County Hospital Valcea, Ramnicu Valcea, South-West region, 10 000 sqm, renovation Dr. Victor Gomoiu Children's Hospital, Bucharest, sector 2, 21 000 sqm, renovation County Hospital Alexandria, Alexandria, South region, 9 300 sqm, renovation City Hospital Suceava, Suceava, North-East region, 16 000 sqm Medical Clinic, Bucharest, sector 1, 10 000 sqm

2014 2015 2016 Ongoing and planned Health-related projects

SOURCE: IBUILD.INFO

ducation- and health-related construction is set Demand for renovation and new construction remains Eto have a positive performance over the forecast high; although government financing is an issue. An HEALTH- AND period, as highly required rehabilitation and renovation evidence for this major demand is the fact that in works are expected in addition to several new projects. some cases citizens have taken action themselves, for For this section, our previous forecast continues to be instance, in Timisoara patients contributed with sev- EDUCATION- supported by the new information. eral thousands of euro for the renovation of several sections and a surgery room. Several health-related facilities have been renovated RELATED in 2014, including Mavromati Hospital in Botosani and a With regards to education-related construction, the cancer therapy laboratory and storage facility in Sibiu. aging stock of infrastructure makes renovation works a necessity for a large amount of buildings. Many CONSTRUCTION In 2015, renovation works of around 60 000 sqm buildings used for education are not suited for this GBA of hospitals are to reach completion. These are function, as they have been repurposed, mostly from ongoing or planned projects in the cities of Bucharest, old military units and other civil buildings. Ramnicu-Valcea, Alexandria and Petrosani. In 2014, one major renovation project has been com- Regarding new hospital construction, no major pro- pleted at Babes-Bolyai University, Physical Education jects have reached completion in 2014, however, and Sports Faculty (22 000 sqm) and one more is several projects are scheduled for 2015 totaling at 34 expected to be completed by the end of the year:Vintila 000 sqm, and for 2016 totaling at 15 000 sqm. Bratianu School (52 500 sqm).

ROMANIA Health- and education- related construction © 2014 EECFA 29 ROM-EST research laboratory , Râureni, South-West region, EUR 8 million Hotel Gemi Center, Arad, West region, 5 000 sqm M. Kogalniceanu High School, Snagov, Bucharest-Ilfov region, 8 100 sqm Advanced Research Institute, Timisoara, West region, 14 000 sqm Scientiﬁc and technology park, Bucharest, sector 3, 13 ha Cumpana School Campus, Constanta, South-East region ENDOCED Laboratory, Bucharest, sector 1, 1 500 sqm Vintila Bratianu School, Dragomiresti Vale, Bucharest-Ilfov region, 52 500 sqm, renovation Research Center Campus, Bucharest, sector 6, 8 500 sqm Craiova University - Mechanics Faculty, Craiova, South-West region, 6 300 sqm, extension Extreme Light Infrastructure - Nuclear Physics Facility, Magurele, Bucharest-Ilfov region, 34 000 sqm, EUR 224 million

2014 2015 2016 Ongoing and planned Education-related projects

SOURCE: IBUILD.INFO

For 2015, most investments are focused on research The main demographic factor influencing this sector is facilities, amounting to 58 000 sqm of new buildings. the aging population. An increase in the number of the HEALTH- AND The Romanian research sector has been on the decline elderly will require more health care facilities and per- in the last decade, with a constant drop in the number sonnel. At the same time, a decrease in the number of of active facilities. This trend could be reversed in the children will lead to lower demand for new education EDUCATION- near future as several other major projects might be construction. considered for implementation. RELATED CONSTRUCTION

Constanta Arena, Constanta, South-East region, 7 ha Water Universe aquapark, Dudestii Noi, West region, EUR 15 million Aquatic Center, Craiova, South-West region, 8 500 sqm Parcul Titan Parking, Bucharest, sector 3, 21 000 sqm, 990 parking places Dracula thematic park, Bistrita-Nasaud, North-West region, 40 000 sqm Underground parking Piata Alba Iulia, Bucharest, sector 3, 1 496 parking places Underground parking Avram Iancu, Arad, West region, 18 083 sqm Capidava Fortress, Constanta, South-East region, renovation Palace of the Patriarchate, Bucharest, sector 4, 16 000 sqm, renovation Parking building, Brasov, Center region, 8 900 sqm Multifunctional Sport Hall, Cluj-Napoca, North-West region, 38 400 sqm Deveselu Airbase, Olt, South-West region, 108 ha Metropolitan Cathedral Iasi, Iasi, North-East region, 18 000 sqm, renovation Kretzulescu Park, Campulung, South region, 35 000 sqm, renovation Palace of Justice, Oradea, North-West region, 15 351 sqm, renovation Orthodox Cathedral - Catedrala Mantuirii Neamului, Bucaharest, sector 5, 42 000 sqm National Theater Bucharest, Bucharest, sector 5, 4 500 sqm, renovation

2014 2015 2016 2017 Ongoing and planned Other non-residential projects SOURCE: IBUILD.INFO

ivic buildings in Romania are generally a remnant 1990. As such, a large number of new parking facili- Cfrom the communist era, and as such aged and ties are undergoing or planned, with more than 70 000 are in need of repair. Several projects are ongoing or sqm of new parking buildings and underground park- OTHER NON- planned to address this situation, such as the renova- ing to be delivered in 2015 and 2016. tion of The Romanian Peasant Museum in Bucharest (10 000 sqm), The National Theatre in Bucharest (4 500 Several parks and entertainment facilities are also RESIDENTIAL sqm) and The Palace of Justice in Oradea (15 351 sqm). under construction or planned in the near future: the Water Universe Aquapark in Dudestii Noi ( E U R Religious buildings are also an active field of invest- 15 million), an Aquatic Center in Craiova (8 500 sqm) ment in Romania, with several major projects ongoing: and a Dracula thematic park in Bistrita-Nasaud (40 the Metropolitan Cathedral Iasi (18 000 sqm), the Pal- 000 sqm). ace of the Patriarchate in Bucharest (16 000 sqm), and a new orthodox cathedral – Catedrala Maintuirii Nea- Construction of sports facilities has decelerated, how- mului (42 000 sqm) in Bucharest. There is also a large ever, several major projects are still underway, such number of small scale religious buildings being con- as the Multifunctional Sports Hall in Cluj – Napoca (38 structed or renovated across the country. 400 sqm) and Constanta Arena, a 700 000 sqm multifunctional center with various other facilities planned Parking is an increasingly pressing issue in Romania for Constanta. as the number of cars has increased 3.5 times since

VALUE VALUE GROWTH RATES AT CONSTANT PRICE (%) ROMANIA (RON MLN) (EUR MLN) NON-RESIDENTIAL MARKET SIZE 2013 2013 2006 2007 2008 2009 2010 2011 2012 2013 2014(F) 2015(F) 2016(F) AND DEVELOPMENT

HOTEL, ACCOMODATION BUILDINGS 879 199 57.9 12.4 32.2 -41.1 -9.7 49.2 -13.0 3.2 3.1 2.9 3.0

OFFICE BUILDINGS 7 145 1 617 13.6 1.2 74.2 7.1 -17.2 1.6 -19.5 8.0 7.7 0.9 1.0

RETAIL AND WHOLESALE BUILDINGS 1 244 281 47.2 16.3 54.6 -46.1 -9.9 8.9 -43.7 -8.2 -6.5 -0.3 -0.4

TRANSPORT BUILDINGS 552 125 8.2 8.7 6.3 -32.3 137.7 -38.3 0.3 3.9 11.0 13.3 5.0

INDUSTRIAL BUILDINGS AND WAREHOUSES 5 120 1 158 9.4 37.1 8.3 -29.6 -27.1 59.2 -22.5 8.9 4.1 4.2 4.2

EDUCATION-RELATED BUILDINGS* 1 927 436 93.7 37.8 12.5 4.5 -35.6 20.3 -29.0 26.4 10.9 5.3 2.9

HEALTH-RELATED BUILDINGS

AGRICULTURAL BUILDINGS

OTHER NON-RESIDENTIAL BUILDINGS 1 148 260 -5.6 -5.6 -9.4 -28.2 33.3 -30.5 61.8 6.5 8.2 3.7 2.6

TOTAL NON-RESIDENTIAL CONSTRUCTION 18 016 4 076 21.3 18.1 33.0 -17.0 -16.6 14.4 -20.7 8.1 6.0 2.9 2.4

*EDUCATION AND HEALTH TOGETHER

Road construction, RON bln (at 2013 prices) 2001 2016

oad construction in Romania is prone to growth over expected to be much lower, at 56 km estimated to be Rthe forecast period,especially based on the develop- opened by the end of the year and with only 17 km to ROAD ment of highways and bypasses and the modernization be completed in 2015. This is due to the fact that many of national roads. Nevertheless, inefficiency of author- projects are yet to start, after a series of legal issues ities could hinder this growth, as Romania has yet to and failed public tenders. Delays have been recorded CONSTRUCTION absorb all the funding of the 2007-2013 EU programs, in most projects and government funding has become which have a 2015 deadline, with the absorption rate an issue in the second half of the year. reaching only 34% for transport projects so far. MAIN ONGOING PROJECTS ARE AS FOLLOWS: Our forecast has been adjusted for this section. While we initially expected growth, in light of the factors dis- 1. A1 Highway, with 22,1 km opened in 2014, between cussed at the end of the chapter, we are forecasting a Orastie and Sibiu, 34,2 to be finished by end 2014 in major drop in construction output for 2014; although the Nadlac Arad section 1+2 and 10,7 km to be com- we expect the sector to return to a positive trend pleted in 2015, namely Timisoara – Lugoj section 2 afterwards. and Nadlac Arad section 1.

The stated main objective for road development in 2. A1 Highway projects Lugoj-Deva sections 2,3 and 4 Romania is highway construction, with 115 km finished (79.3 km) and Nadlac Arad section 2 (16.7 km) have in 2013, bringing the total highway length in Romania started in 2014, to be completed in 2015 and 2016. to little less than 650 km. For the future, completion is

ROMANIA Road construction © 2014 EECFA 33 A1 Highway, Sibiu-Pitesti, Center and South regions, 116 km A3 Highway Comarnic-Brasov, Center and South regions, 58 km Satu Mare bypass road, Satu-Mare, North-West region, 13,5 km Slatina bypass road, Olt, South-West region, 8 km Stei bypass road, Bihor, North-West region, 28 km Alesd bypass road, Bihor, North-West region, 13 km Caracal bypass road, Olt, South-West region, 11 km A 10 highway, segment 2, Alba, Center region, 24.3 km A 10 highway, segment 1, Alba, Center region, 17 km Târgu Jiu bypass road, Gorj, South-West region, 20 km Brasov Bypass section 1, Brasov, Center region, 7.29 km A 10 highway, segment 4, Cluj, North-West region, 16.3 km A 10 highway, segment 3, Alba, Center region, 12.5 km Express road, Oradea, North-West region, 3 525 m Overhead bridge, Pitesti, South region, 500 m Targu Mures bypass road, Mures, Center region, 11 km Overhead bridge, Bucharest A1 Highway, Lugoj-Deva, segment 2, 3, 4, West region, 79.3 km A1 Highway, Nadlac-Arad segment 2, Arad, West region, 16.7 km A1 Highway, Nadlac-Arad segment 1, Arad, West region, 22.2 km A1 Highway, Timisorara-Lugoj segment 2, Timis, West region, 25 km Suspended roundabout, Prahova, South region Centura Carei A3 Highway Bucharest-Ploiesti segment 1, Bucharest-Ploiesti, 19.5 km

2014 2015 2016 2017 2018

Ongoing and planned Road projects SOURCE: IBUILD.INFO

ROAD 3. The A3 Highway with 6.5 km on the Bucharest – Ploi- ing, partly in the 2007-2013 section and partly in the esti section 1 to be completed in 2015. However, the 2014-2020 section.Construction is expected to start contract for this section has been cancelled, so it shortly. CONSTRUCTION might be postponed. 2. The A3 Highway Comanic-Brasov (58 km) is planned 4. Targu Jiu bypass of 11km, expected to reach com- to start in 2015, however, issues with the financing pletion in 2016. and contracting of the project will likely lead to delays. 5. A large number of bypass and express roads are to reach completion in 2016 near the cities of Brasov, 3. A large number of bypass roads are to start in 2015 Targu Mures, Carei and Oradea and reach completion in 2016 (totalling at 100 km) near the cities of, Alesd, Stei, Slatina, Targu Jiu, SEVERAL OTHER PROJECTS ARE PLANNED AND Satu Mare and Caracal. EXPECTED TO START CONSTRUCTION IN THE NEAR FUTURE: Romania has an old road network, in need of constant repair and modernization works. An analysis from the 1. The A10 Highway Sebes – Turda with 70 km, sched- Ministry of Transportation regarding the state of the uled for completion in 2016 for a cost of EUR 570 roads surface puts the ”low” quality at 30% of the total million. The project has been approved for EU fund- surface and the ”precarious” quality at 20% of the total

ROMANIA Road construction © 2014 EECFA 34 road surface. Furthermore, out of the approximately The projection for 2020 includes 887 km new high- 85 000 km of roads, the number of modern roads ways, 2241 km of new express roads and bypasses, accounts for around 1/3 of the total stock. Therefore, and 3225 km of renovated roads. renovations are in growing demand and should be a major focus in the near future. Around 500 km of Our previous forecast has been revised in the light of roads are set to be undergoing modernization every several key factors changing. Firstly, at least EUR 300 year, in a national program aiming at the completion million in expected output has failed to materialize of 15 stages totalling at 11.300 km by 2014. However, due to projects being postponed or contracts failing currently the program in only at stages 4, 5 and 6, as to be signed. Secondly, there have been major budget ROAD completion rates remain relatively low and delays are changes, with the National Road Agency having its common. budget greatly cut for investment projects (for exam- ple down to 50% from the 2013 budget for highways). CONSTRUCTION The EU Operational Transport Project (POS-T) is the Thirdly, legal and management issues have led to less main source of funding for investment into the road money being spent. Out of the EUR 500 million budg- network, however, as previously mentioned, absorp- eted for highway investment, the agency has spent tion rates of the allocated funding are an issue. For the EUR 228 million in the first 9 months of the year, most 2007-2013 POS-T programs the EU had allocated EUR of which were late payments for works done as early 4.4 billion for Romania. As of November 2014, Romania as 2010. And lastly, the election year and the accompa- has absorbed EUR 2 billion (EUR 700 million in 2014 nying political instability have had the reverse effect of alone) for the transportation projects, most of which what we assumed. While traditionally in election years landed in the road sector. As it is usual for payments to there was a major focus on completion and employ- take place in December, we predict this number to rise, ment, which lead to increased construction output, in leaving at least EUR 2 billion still available for 2015; 2014 the opposite has happened, as money has been out of which almost EUR 1 billion already contracted. moved away from civil engineering to social programs, local spending and tax reductions.All these effects The revised General Master Plan for Transportation have resulted in an underperforming first 3 quarters includes 120 projects, with 64 of the in the road sector. of the year and thus, we have been forced to change our forecasts accordingly.

Railway Corridor IV, Sighisoara - Brasov, Sighisoara - Brasov, Center region, 130 kmrenovation Railway Corridor IV, section 3, Simeria – Vintu de Jos, Center region, 42.7 km, EUR 320 million Railway Corridor IV, section 4, Vintu de Jos – Coslariu, Center region, 33.1 km, EUR 173 million Railway Corridor IV, section 5, Coslariu – Sighisoara, Center region, 91.6 km, EUR 528 million Railway Corridor IV, section 1, border - Curtici - Arad, West region, 41.1 km, EUR 244 million

2014 2015 2016 2017 Ongoing and planned Railway projects

SOURCE: IBUILD.INFO

omanian railroads are undergoing a major process of bridges had exceeded their life span as of 2012, and Rof maintenance and modernization, which has been we do not expect this to have improved since. Recently RAILWAY ongoing for several years with little progress. Delays 8000 out of the 10 700 km of railroad were deemed in are frequent, summing on average 2 million minutes dire need to repair by the national railroad company. over a year and the speed of transport on rail is 1.5 – 2 Due to the required expenses and the slow progress CONSTRUCTION times slower than on roads. This is leading to a decline of these projects the government is under pressure to of usage of the railroad; however interest in recovery sell or close around 10% of the railroad network. is still high. Regarding the current major projects, most work is Regarding railway construction, we have also deemed still ongoing on the renovation of Railway Corridor IV. necessary to change our initial forecast for 2014, in Out of ongoing projects, in 2015 several sections are light of the low civil engineering performance in the planned for completion, totalling at approximately 150 first part of the year. While our previous forecast km of rail, the projects having a total value of EUR 850 expected growth in 2014, our revised version is that million invested over the 2012-2015 period. of a negative evolution in 2014, with 2015 and 2016 returning to a positive trend. In 2017 another project, Section 3 Simeria – Vantu de Jos, of 42.7 km, is expected to be completed. The maintenance of transport infrastructure is an ongoing process with around EU 10 million being allot- There is also an interest in railroad stations, with the ted for this purpose yearly. However, progress is slow station of Targu Mures already undergoing renovation as 65% of main lines, 80 % of secondary lines and 40%

ROMANIA Railway construction © 2014 EECFA 36 (project value EUR 10 million) and several other ones Almost EUR 400 million are still available for new planned. projects in 2015, through the EU co-funded Opera- RAILWAY tional Transport Project 2007 - 2013 EUR, with which Regarding planned projects, the renovation of 130 1.7 billion were allocated for investments in the rail- km of railroad is scheduled to start in 2015 between road sector over the whole period, and many projects CONSTRUCTION Sighisoara and Brasov. The Valcea-Valcele line might have been contracted and are ongoing. We therefore restart construction in 2015 and be completed in 2017, assume an increase in output if all contracted works requiring EUR 0.4 billion more to be invested, after are completed. being stopped for several decades. The national railroad companies are currently hav- The revised General Master Plan for Transportation ing several issues that prevent them from properly includes 16 projects for railroad network, focusing on conducting investment projects, including failed pri- the rehabilitation of 4536 km of railroads by 2020. vatization projects. If these projects were to come to fruition, we expect construction output in this sector to rise dramatically.

Subway - M4 Line, Bucharest, 15 km, EUR 159 million, extension Subway - M7 Line, Bucharest, 25 km Subway -M6 Line, Bucharest, 16 km Railway tunnel renovation, Suceava, North-East region, 255 m, 500 000 euro Brasov-Ghimbav airport - runway and parking, Ghimbav, 17 700 sqm Military airport, Otopeni, Ilfov, 1321 m, EUR 11 million Tulcea Danube Delta Airport, Tulcea, South-East region, 52 150 sqm, modernisation Oradea International Airport - runway, Oradea, North-West region, 2 100 m, extension Viaduct, Sibiu, Center region, 4 300 sqm, EUR 6.6 million Airport Mihail Kogalniceanu, Constanta, South-East region, 155 253 sqm, renovation Railway bridge, Suceava, North-East region, EUR 2.4 million Northern breakwater extension, Constanta, South-East region, 1 005 m, EUR 94 million Airport Stefan cel Mare, Suceava, North-East region, 2 460 m, 1 240 sqm, extension, renovation Nicolina Tunnel, Iasi, North-East region, 15 560 sqm, renovation Mihai Eminescu Tunnel, Iasi, North-East region, 287 m Subway - M5 Line, Bucharest, 10 km, EUR 256 million

2014 2015 2016 2017 2018 2019 Ongoing and planned Other transport projects

SOURCE: IBUILD.INFO

omanian airfields are old, most of them having been THERE ARE ALSO A NUMBER OF ONGOING PRO- Rbuilt in the communist era, and as such, are sub-par JECTS AND PLANNED, INCLUDING: OTHER TRANSPORT and in need of further investment. 1. Stefan cel Mare Airport in Suceava is undergoing Our forecast of this sector remains unchanged, with renovation and extension works, expected to be RELATED growth expected in 2014 and 2015, and a slowdown finished in 2015. of activity in 2016. 2. Mihail Kogalniceanu Airport in Constanta is CONSTRUCTION SEVERAL PROJECTS HAVE ALREADY BEEN COM- undergoing renovation works (155 253 sqm), PLETED IN 2014, INCLUDING: scheduled for completion in 2015.

1. Ghimbav Airport, in Brasov has finished a new run- 3. The international airport in Iasi (17 200 sqm) is way construction (2 850 m) undergoing renovation and extension works, is currently undergoing and expected to be completed 2. International Airport in Iasi has finished an exten- in 2015. sion of its runway (2 400m) 4. Oradea International Airport is building an extension of its runway (2 100 m) to accommodate for larger aircraft, expected to be completed in 2015.

ROMANIA Other transport related construction © 2014 EECFA 38 5. Tulcea Danube Delta Airport is also planning a 104 km. The plan also includes 14 projects regarding modernization of its facilities (52 150 sqm), planned air traffic infrastructure. for completion in 2015. Through the EU co-funded Operational Transport Pro- 6. After the new runway, Ghimbav Airport in Brasov is ject EUR 171 million were allocated for investments in also planning to develop the runway and parking (17 the harbourdevelopment sector, and a further EUR 41 700 sqm) in 2017. million were earmarked for air transport development. Nevertheless, so far the amounts paid have been only 7. Airport Transylvania in Targu Mures is planning a fraction of these, with some projects not receiving an extension to its runway (3 600), predicted to be any payments at all. completed in 2016. Work continues on the Romanian seaside, with the 8. Bacau is planning a renovation of its 4 7000 sqm Mamaia promenade almost completed and Protec- International Airport, to be completed in 2017. tion and Rehabilitation of the Southern Black Sea Coast, phase 1 in progress. In the year 2015 Phase 2 Airport-related construction is therefore predicted to of the project is expected to begin. experience continuous and steady growth for the next years.

The Romanian subway system is only present in Bucha- OTHER TRANSPORT rest, where extension works have been undergoing for several years on line M5. It has seen delays and pushed back its completion to 2016. Also, an extension RELATED for line M4 and two new lines (M6 and M7) are planned for the near future, with completion dates into 2020. CONSTRUCTION A railway bridge is undergoing renovation in Suceava on an EUR 2.4 million investment, and railway bridges are also planned to be constructed at Fetesti, Cer- navoda (2 564m – EUR 35 million). Several smaller projects are planned as well, such as the renovation of bridges and crossings, though funding them might be an issue.

According to the revised version of the Master Plan for Transportation, 14 projects are planned for harbours and waterways, including 11 projects on harbour modernization, improving 585 km on the River Danube for water traffic and a new Bucharest-Danube channel of

Nuclear power plant unit 4 and 5, Cernavoda, South-East region, 1440 MW, ALFRED nuclear reactor, Mioveni, South region, 130 MW, EUR 1 billion Pumped-storage hydroelectric power station, Tarnita-Lapustesti, Center region, 1 000 MW, EUR 1.1 billion Mintia thermal power plant, Mintia, West region, 5 000 sqm, renovation Thermal power plant, Mures, Center region, 250 MW, new construction, renovation Solar plant, Harghita, Center region, 30 MW, Rovinari thermal power plant, Rovinari, South-West region, 500 MW, Oil storage facility 160 Videle, Videle, South region, , EUR 68 million Paroseni thermal power plant, Hunedoara, West region, , renovation

2014 2015 2016 2017 2018 Ongoing and planned Energy-related projects

SOURCE: IBUILD.INFO

fter the increase in renewable energy power plants eration of solar power is predicted to double in 2015; Ain 2013, fearing a development “bubble” the govern- biomass is to increase by 50%, and wind power by ENERGY, ment took measures to discourage new construction about 15%. into this field. MAJOR INVESTMENT PROJECTS ARE ALSO ONGO- PIPELINE, CABLE Our initial forecast for energy-related construction ING OR PLANNED IN THE NEAR FUTURE, SUCH AS: has been adjusted slightly downwards, to account for the cancellation of several projects. However, we con- 1. The renovation of Paroseni thermal power plant is CONSTRUCTION tinue to postulate that energy-related construction will scheduled to be completed in 2015 grow in 2015 and 2016 as major projects are ongoing or are set to start in this period. 2. The renovation of Mintia thermal power plant (5 000 sqm) is also expected to start in 2015 These measures lead to a deceleration of new developments. From 33 new wind plants and 47 new solar 3. A Pumped-storage hydroelectric power station is plants in 2013, in the year 2014 so far only 3 new wind planned at Tarnita-Lapustesti, to start in 2015 and plants and 9 new solar plants have been constructed, be completed by 2022 (investment value of EUR 1.1 delivering an extra 500 MW (source: Transelectrica billion) report). 4. A new experimental nuclear reactor of 130 MW is According to Transelectrica’s (the Romanian power planned in Mioveni. Construction would start in 2017 transportation company) official forecasts, the gen- and be completed by 2025 and would cost approximately EUR 1 billion

ROMANIA Energy, pipeline, cable construction © 2014 EECFA 40 SEVERAL PROJECTS HAVE BEEN POSTPONED OR Nuclear power is predicted to increase its contribution CANCELLED AND THIS HAS RESULTED IN A NEGA- to total power generated in Romania, alongside with ENERGY, TIVE CHANGE IN OUR FORECAST. SOME OF THESE renewable energy. At the moment 20% of power pro- PROJECTS ARE: duction comes from nuclear plants and it is expected to reach 45% by 2040. This would require the con- PIPELINE, CABLE 1. The wind power projects planned in Viisoara (2 pro- struction of at least 2 new reactors in Cernavoda, jects, 100 MW) and Deleni (122.5 MW) have been which are currently under negotiation and could start postponed. in 2017 earliest with scheduled completion in 2021, CONSTRUCTION each reactor having a capacity of 720 MW. 2. A new Hydro Power Plant: planned in Cavnic, construction expected to start in 2014, however, it has been postponed.

3. Hidroelectrica Stejarul Bicaz Hydro Power Plant:planned to undergo renovation works starting in 2015, on a value of EUR 136.9 million, however, the project was cancelled.

Glina Waste Water Treatment Plant phase 2, Glina, Bucharest-Ilfov region, EUR 152 million Waste water management, Sibiu, Center region, EUR 4.7 million Protection and Rehabilitation of the Southern Black See Coast, phase 2, 20 km Waste management facility, Constanta, South-East region, 21 000 tons/year, EUR 13 million Waste management plant, Dolj, South-West region, 44 000 tons/year Waste water management, Mehedinti, Strehaia, South-West region, 11 600 sqm Pumping station, Titu, South region, EUR 6 million Waste management facility, Remetea, Center region, 23 000 tons/year Waste management facility, Vadeni, South-East region, 30 000 tons/year Waste water and water management, Ilfov, Bucharest-Ilfov region, new construction, renovation Tei Plumbuita recreation park, Bucharest, Sector 2, 75 000 sqm Waste deposit, Remetea, Center region, 450 000 m3 Waste deposit, Tortoman, South-East region, 10 000 sqm Water management plant, Mures, Center region, 1 000 m3/day, renovation Waste management facility, Constanta, South-East region, EUR 6.7 million Waste management plant, Prahova, South region, 30 400 tons/year, Waste management plant, Prahova, South region, 1.5 ha Waste management plant, Braila, South-East region, 286 000 tons Waste water and water management, Prahova, South region, EUR 146 million pumping station and sewerage system, Maramures, North-West region, extension, renovation Waste water and water management, Satu Mare, North-West region, EUR 126 million Waste water and water management, Deva, Vest region, EUR 106.7 million Protection and Rehabilitation of the Southern Black See Coast, phase 1, EUR 170 million Waste water and water management, Botosani, North-East region, EUR 102 million Pumping station, Bistrita-Nasaud, North-West region, Waste water and water management, Sibiu, Center region, EUR 132 million Waste water and water management, Maramures, North-West region, EUR 148 million Waste water and water management, Bacau, North-East region, EUR 120 million

2014 2015 2016 2017 Ongoing and planned Utility and Other civil engineering projects PUBLIC UTILITY SOURCE: IBUILD.INFO

emand and works in the public utility sector remain stations are also developed or renovated, across the Dat a high level. The aging pipeline network is causing country and are predicted to be delivered in 2015. issues, and every major city in Romania is experiencing 3-4 water service interruptions per year due to Also, waste water management and sewage are prob- damages. lematic and an ongoing investment field in Romania, with more than 1/3 of Romanian homes still lack- We await the sector to show a steady growth, mainly ing any form of sewage access.The sewer system is backed by water supply development, waste water expanding with around 1500 km of pipes each year management and sewage. (reaching 26 500 km in 2013). More than 16 projects are ongoing or planned on this sector, with an average Access to drinking water is still an issue in many areas value of just under EUR 100 million, and are expected of Romania, since in 2013 only 12.3 million of Romani- to be completed by 2016. ans had access to the public drinking water system. As such, investment is active in this field, the number of Beside new construction, there is still a lot of work people with access to the system increasing on aver- ongoing on the maintenance and repair of the old age with 200 thousand per year. A number of pumping networks.

ROMANIA Public utility © 2014 EECFA 42 Funding for investments in this subsegment is usu- completion on these was of 48% so we expect them to ally covered with assistance from the EU, through continue into 2015 as well. PUBLIC UTILITY the Environment Sectorial Operational Plan 2007- 2013, or by the European Bank for Reconstruction and 31 projects are undergoing in this segment with EU Development. assistance, adding to EUR 3 billion total value (over the 2008-2015 period) and are expected to be completed In 2014, a number of 12 ongoing projects regard- in 2015. Completion on these projects is on average ing water and waste water management are to be 40% and they should be completed by end 2015 or they completed with EU funding assistance, summing up risk losing the allotted funds. to a total value of EUR 1 billion (over the 2008-2014 period). However, as of December 2014, the average

VALUE VALUE GROWTH RATES AT CONSTANT PRICE (%) ROMANIA (RON MLN) (EUR MLN) CIVIL ENGINEERING MARKET SIZE 2013 2013 2006 2007 2008 2009 2010 2011 2012 2013 2014(F) 2015(F) 2016(F) AND DEVELOPMENT

TRANSPORT INFRASTRUCTURE 19 196 4 343 23.8 34.8 44.6 -7.1 -12.0 1.7 -7.3 2.6 -11.4 8.2 4.6

ROADS 13 733 3 107 28.8 24.9 31.1 -10.9 -11.3 6.4 -6.9 3.0 -14.1 8.4 4.9

RAILWAYS 523 118 -18.0 165.3 -3.8 -37.4 -8.0 -11.7 -27.9 3.1 -9.1 8.4 7.8

AIRFIELDS 98 22 587.8 140.4 -79.4 -24.9 -86.2 123.2 880.7 7.5 56.5 72.2 -9.6

BRIDGES AND TUNNELS 3 705 838 -36.5 70.4 641.6 4.6 -6.9 -19.3 24.8 3.0 -9.1 5.3 3.5

HARBOURS 1 137 257 34.0 46.3 29.1 22.2 -23.7 13.2 -48.2 -3.0 7.4 6.3 5.6

ENERGY, COMPLEX INDUSTRIAL AND LONG TERM PIPELINES 5 085 1 150 -1.3 83.8 -5.9 -15.5 19.4 -10.8 17.3 6.0 6.1 6.3 4.5

PUBLIC UTILITY 1 258 285 -8.2 24.4 9.6 13.1 -28.8 11.3 -2.5 3.0 9.5 7.4 5.5

OTHER CIVIL ENGINEERING 7 420 1 679 43.9 -5.2 11.3 -5.8 9.6 -0.4 -14.6 4.0 -6.9 7.7 4.6

TOTAL CIVIL ENGINEERING CONSTRUCTION 32 959 7 457 24.1 26.8 27.0 -7.1 -4.7 -0.2 -6.0 3.5 -6.9 7.7 4.6

KEY ONGOING AND PLANNED NON-RESIDENTIAL PROJECTS IN ROMANIA

(PLANNED) PLANNED SEGMENT STATUS NAME LOCATION VOLUME START END

RESIDENTIAL ONGOING DEALU MORII RESIDENCE Q2 2014 H2 2017 BRASOV, CENTER REGION 12 000 SQM

RESIDENTIAL ONGOING CONDOMINIUM ANDREI MURESAN Q2 2014 Q3 2015 BACAU, NORTH-EAST REGION 6 650 SQM

RESIDENTIAL ONGOING NOVUM RESIDENCE NERVA TRAIAN Q2 2014 Q2 2015 BUCHAREST, SECTOR 3 7 700 SQM

RESIDENTIAL ONGOING THE PARK Q3 2014 H2 2017 BUCHAREST, SECTOR 4 20 000 SQM

RESIDENTIAL ONGOING VISTA RESIDENTIAL CONCEPT PHASE 2 Q3 2014 Q2 2015 BUCHAREST, SECTOR 4 18 000 SQM

RESIDENTIAL ONGOING PARK RESIDENCES 5 Q1 2014 Q2 2015 BUCHAREST 17 000 SQM

RESIDENTIAL ONGOING CLASS PARK RESIDENCE Q2 2014 H1 2015 TARGOVISTE, SOUTH REGION 24 000 SQM

RESIDENTIAL PLANNED PUSKIN 11 CONDOMINIUM Q3 2013 H1 2015 BUCHAREST, SECTOR 1

RESIDENTIAL PLANNED METROPOLITAN RESIDENCE - APARATORII PATRIEI Q4 2014 H2 2015 BUCHAREST, SECTOR 4 8 700 SQM

RESIDENTIAL PLANNED CONDOMINIUM H1 2015 2016 ORADEA, NORTH-WEST REGION 8 000 SQM

RESIDENTIAL PLANNED CONDOMINIUMS Q1 2015 Q4 2015 TIMISOARA, WEST REGION 50 000 SQM

RESIDENTIAL PLANNED CONDOMINIUMS Q4 2014 H2 2016 CRAIOVA, SOUTH-WEST REGION 182 000 SQM

RESIDENTIAL PLANNED CONDOMINIUM H2 2015 H2 2016 IASI, NORTH-EAST REGION 5 600 SQM

RESIDENTIAL PLANNED VISTA RESIDENTIAL CONCEPT PHASE 3 Q2 2015 Q4 2015 BUCHAREST, SECTOR 4 25 000 SQM

RESIDENTIAL PLANNED VISTA RESIDENTIAL CONCEPT PHASE 4 H1 2016 H2 2016 BUCHAREST, SECTOR 4 22 000 SQM

RESIDENTIAL PLANNED ONE CHARLES DE GAULLE H2 2015 H1 2016 BUCHAREST, SECTOR 1 N/A

RESIDENTIAL PLANNED AVANTGARDEN 3 PHASE 3 2017 2020 BRASOV, CENTER REGION 30 000 SQM

RESIDENTIAL PLANNED ONIX RESIDENCE PHASE 2 Q2 2015 H2 2017 BUCHAREST, SECTOR 6 6 000 SQM

RESIDENTIAL PLANNED SUNSET LAKE RESIDENTIAL H2 2014 H2 2016 BUCHAREST, SECTOR 1 20 000 SQM

RESIDENTIAL PLANNED FLAMINGO PARK FAZA I Q1 2015 Q3 2015 OSTRATU, BUCHAREST-ILFOV REGION 6 250 SQM

OFFICE ONGOING EUROPA BUSINESS CENTER Q1 2014 Q4 2015 CLUJ-NAPOCA, NORTH-WEST REGION 11 000 SQM

OFFICE ONGOING LUMINA VERDE BUSINESS CENTER Q1 2014 Q4 2015 PLOIESTI, SOUTH REGION 7 600 SQM

OFFICE ONGOING ROGERIUS BUSINESS CENTER Q1 2014 Q4 2014 ORADEA, NORTH-WEST REGION 12 200 SQM

OFFICE ONGOING BUSINESS CENTER Q2 2014 H2 2015 BRASOV, CENTER REGION 18 000 SQM

OFFICE ONGOING TEAM BUSINESS CENTER Q2 2014 Q3 2015 CLUJ-NAPOCA, NORTH-WEST REGION 5 500 SQM

OFFICE ONGOING P.C. BUSINESS CENTER Q4 2013 Q3 2015 BUCHAREST, SECTOR 1 10 000 SQM

OFFICE ONGOING E.ON TOWER Q2 2014 Q4 2015 TARGU MURES, CENTER REGION 15 000 SQM

OFFICE ONGOING UNIRII VIEW Q4 2012 Q4 2014 BUCHAREST, SECTOR 3 27 000 SQM

OFFICE ONGOING THE OFFICE, PHASE 2 Q3 2014 Q3 2015 CLUJ-NAPOCA, NORTH-WEST REGION 31 600 SQM

OFFICE ONGOING TRADECENTER Q1 2014 Q4 2014 ORADEA, NORTH-WEST REGION 16 000 SQM

OFFICE ONGOING BUCHAREST ONE Q1 2014 Q3 2015 BUCHAREST, SECTOR 2 69 000 SQM

OFFICE ONGOING AFI PARK PHASE 3 Q2 2013 Q4 2014 BUCHAREST, SECTOR 6

OFFICE ONGOING AFI PARK PHASE 4 AND 5 Q2 2014 Q4 2015 BUCHAREST, SECTOR 6 40 000 SQM

OFFICE ONGOING ENESCU OFFICE BUILDING Q3 2013 Q1 2015 BUCHAREST, SECTOR 1 8 000 SQM

OFFICE ONGOING GREEN COURT, PHASE 2 Q2 2014 H1 2016 BUCHAREST, SECTOR 2 12 LEVELS

OFFICE ONGOING LIBERTY TECHNOLOGY PARK, PHASE 2 Q3 2014 Q4 2014 CLUJ-NAPOCA, NORTH-WEST REGION 13 412 SQM

OFFICE ONGOING CITY BUSINESS CENTRE, BUILDING E Q4 2013 Q2 2015 TIMISOARA, WEST REGION 15 000 SQM

OFFICE ONGOING THE LANDMARK Q2 2014 Q1 2016 BUCHAREST, SECTOR 1 26 500 SQM

OFFICE ONGOING MOLDOVA CENTER Q4 2014 Q2 2015 IASI, NORTH-EAST REGION 14 600 SQM

OFFICE ONGOING BIG OFFICE Q3 2014 Q2 2015 BUCHAREST, SECTOR 4 5 400 SQM

OFFICE ONGOING UNITED BUSINESS CENTER 5 Q3 2014 H1 2015 IASI, NORTH-EAST REGION 18 000 SQM

OFFICE ONGOING HERMES BUSINESS CAMPUS BUILDING C Q3 2014 H2 2015 BUCHAREST, SECTOR 2 50 000 SQM

OFFICE PLANNED ORHIDEEA TOWERS Q1 2015 H2 2016 BUCHAREST, SECTOR 6 77 500 SQM

OFFICE PLANNED THE OFFICE, PHASE 3 Q2 2015 Q2 2016 CLUJ-NAPOCA, NORTH-WEST REGION 31 600 SQM

OFFICE PLANNED VICTORIEI OFFICE Q4 2014 Q3 2015 BUCHAREST, SECTOR 1 16 000 SQM

OFFICE PLANNED MUNICIPALITY OF BUCHAREST SECTOR 5 Q3 2014 H2 2015 BUCHAREST, SECTOR 5 22 000 SQM

OFFICE PLANNED OFFICE BUILDING AT MARRIOTT BUCHAREST GRAND HOTEL H1 2015 H2 2016 BUCHAREST, SECTOR 5

OFFICE PLANNED OPTICA BUSINESS PARK, PHASE 3 Q1 2016 Q2 2017 TIMISOARA, WEST REGION 12 000 SQM

OFFICE PLANNED CORESI BUSINESS PARK, PHASE 2 Q2 2015 H1 2016 BRASOV, CENTER REGION 7 200 SQM

OFFICE PLANNED CLUJ BUSINESS CENTER, PHASE 2 Q2 2015 H2 2016 CLUJ-NAPOCA, NORTH-WEST REGION 31 000 SQM

OFFICE PLANNED TUNARI 60A OFFICES H1 2015 H1 2016 BUCHAREST, SECTOR 2 8 600 SQM

OFFICE PLANNED BUZESTI CENTER Q1 2015 H2 2016 BUCHAREST, SECTOR 1 30 000 SQM

OFFICE PLANNED OFFICE BUILDING Q2 2015 H2 2016 TIMISOARA, WEST REGION 17 000 SQM

OFFICE PLANNED ANCHOR PLAZA METROPOL FINISHING WORKS H1 2015 H2 2015 BUCUREŞTI 58 000 SQM

OFFICE PLANNED OREGON PARK PHASE 1 Q2 2015 Q3 2016 BUCHAREST, SECTOR 2 80 000 SQM

OFFICE PLANNED GLOBALWORTH CAMPUS Q2 2015 H2 2016 BUCHAREST, SECTOR 2 105 000 SQM

RETAIL, WHOLESALE ONGOING PARKLAKE PLAZA Q4 2014 H1 2016 BUCHAREST, SECTOR 3 180 000 SQM

RETAIL, WHOLESALE ONGOING KAUFLAND HYPERMARKET Q4 2013 Q4 2014 BUCHAREST, SECTOR 2 32 000 SQM

RETAIL, WHOLESALE ONGOING MEGA MALL BUCHAREST Q4 2013 H2 2015 BUCHAREST, SECTOR 2 220 000 SQM

RETAIL, WHOLESALE ONGOING MALL UNIRII 2 Q2 2012 H1 2015 BUCHAREST, SECTOR 3 30 000 SQM (RENOVATION)

RETAIL, WHOLESALE ONGOING BUCHAREST MALL Q2 2014 Q4 2015 BUCHAREST, SECTOR 3 37 000 SQM (RENOVATION)

KEY ONGOING AND PLANNED NON-RESIDENTIAL PROJECTS IN ROMANIA

(PLANNED) PLANNED SEGMENT STATUS NAME LOCATION VOLUME START END

RETAIL, WHOLESALE ONGOING PLAZA ROMANIA Q2 2014 Q4 2015 BUCHAREST, SECTOR 6 40 000 SQM (RENOVATION)

RETAIL, WHOLESALE ONGOING KAUFLAND Q2 2014 Q4 2014 BACAU, NORTH-EAST REGION 6 000 SQM

RETAIL, WHOLESALE ONGOING CORESI SHOPPING CENTER PHASE 1 Q4 2013 Q1 2015 BRASOV, CENTER REGION 55 000 SQM

RETAIL, WHOLESALE ONGOING AUCHAN DRUMUL TABEREI Q4 2013 Q4 2015 BUCHAREST, SECTOR 6 30 000 SQM

RETAIL, WHOLESALE ONGOING KAUFLAND 3 Q3 2014 H1 2015 TIMISOARA, WEST REGION 5 100 SQM

RETAIL, WHOLESALE ONGOING DEDEMAN STORE Q4 2014 Q1 2015 BUCHAREST, SECTOR 3 15 000 SQM

RETAIL, WHOLESALE PLANNED KORONA SHOPPING CENTER Q2 2015 Q1 2016 BRASOV, CENTER REGION 100 000 SQM

RETAIL, WHOLESALE PLANNED VICTORIA CITY LIFESTYLE RETAIL CENTER Q4 2014 H2 2015 BUCHAREST, SECTOR 1 68 000 SQM

RETAIL, WHOLESALE PLANNED BRASOV SHOPPING CITY H1 2016 BRASOV, CENTER REGION 80 000 SQM

RETAIL, WHOLESALE PLANNED CITY PARK MALL Q4 2014 H2 2016 CONSTANTA, SOUTH-EAST REGION 46 000 SQM (EXTENSION)

RETAIL, WHOLESALE PLANNED KAUFLAND AND COMERCIAL GALERIES H1 2015 H2 2015 SIBIU, CENTER REGION 2 9 HA

RETAIL, WHOLESALE PLANNED VICTORIA CITY LIFESTYLE RETAIL CENTER PHASE 2 H1 2016 H2 2017 BUCHAREST, SECTOR 1 15 000 SQM

RETAIL, WHOLESALE PLANNED DEDEMAN STORE Q4 2014 Q2 2015 SUCEAVA, NORTH-EAST REGION 14 200 SQM

RETAIL, WHOLESALE PLANNED DEDEMAN STORE Q1 2015 H2 2015 TIMISOARA, WEST REGION 12 000 SQM

RETAIL, WHOLESALE PLANNED DEDEMAN STORE H1 2015 H2 2015 ORADEA, NORTH-WEST REGION

RETAIL, WHOLESALE PLANNED KAUFLAND HYPERMARKET H1 2015 H2 2015 BACAU, NORTH-EAST REGION 6 500 SQM

RETAIL, WHOLESALE PLANNED VERANDA SHOP & STAY OBOR Q1 2015 H1 2016 BUCHAREST, SECTOR 2 66 700 SQM

RETAIL, WHOLESALE PLANNED KAUFLAND HYPERMARKET H1 2015 H2 2015 BUCHAREST, SECTOR 5 16 000 SQM

RETAIL, WHOLESALE PLANNED TIMIŞOARA PLAZA Q1 2015 H1 2017 TIMISOARA, WEST REGION 60 000 SQM

RETAIL, WHOLESALE PLANNED DEDEMAN STORE H2 2015 H1 2016 HUNEDOARA, WEST REGION

INDUSTRIAL, WAREHOUSES ONGOING BISTRITA SOUTH INDUSTRIAL PARK Q2 2014 Q2 2015 BISTRITA-NASAUD, NORTH-WEST REGION 180 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING GRAELLS & LLONCH INDUSTRIAL PARK TURDA Q4 2012 Q4 2015 TURDA, NORTH-WEST REGION 235 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING EMERSON FACTORY, PHASE 1 Q3 2013 Q4 2014 ORADEA, NORTH-WEST REGION 27 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING SINIAT PLASTIC BOARD FACTORY Q4 2013 Q1 2015 TURCENI, SOUTH-WEST REGION 25 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING HOLZINDUSTRIE SCHWEIGHOFER WOOD PROCESSING PLANT Q1 2014 H1 2015 COVASNA, CENTER REGION 72 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING STAR TRANSMISSION (DAIMLER) ASSEMBLY HALL Q2 2014 H2 2015 SEBES, CENTER REGION 67 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING TETAROM IV INDUSTRIAL PARK Q2 2014 Q3 2015 CLUJ, NORTH-WEST REGION 850 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING PRODUCTION PLANT Q4 2014 Q2 2015 CAMPIA TURZII, CENTER REGION 22 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING STAR TRANSMISSION (DAIMLER) ASSEMBLY HALL Q4 2014 Q3 2015 SEBES, CENTER REGION 20 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING CREIC SMES INCUBATION CENTER Q2 2013 Q2 2015 CLUJ-NAPOCA, NORTH-WEST REGION 15 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING LOGISTIC CENTER Q3 2014 H2 2015 BAIA MARE 38 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING GREEN WAREHOUSE PROJECT Q3 2014 Q2 2015 CLUJ-NAPOCA, NORTH-WEST REGION 9 800 SQM

INDUSTRIAL, WAREHOUSES ONGOING OPTIBELT POWER TRANSMISSION FACTORY Q3 2014 H1 2015 TAUTII-MAGHERAUS, NORTH-WEST REGION 10 000 SQM

INDUSTRIAL, WAREHOUSES ONGOING WEBASTO FACTORY Q3 2014 Q2 2015 ARAD, WEST REGION 10 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED LOG CENTER BUCHAREST H1 2015 H2 2016 MOGOSOAIA, BUCHAREST-ILFOV REGION 148 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED WIENERBERGER BRICK FACTORY H1 2015 H2 2015 IASI, NORTH-EAST REGION 115 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED EMERSON FACTORY, PHASE 2 Q1 2015 Q3 2015 ORADEA, NORTH-WEST REGION 7 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED BOSCH AUTO PARTS PRODUCTION PLANT, PHASE 2 2015 2016 JUCU, NORTH-WEST REGION 39 700 SQM

INDUSTRIAL, WAREHOUSES PLANNED JAEGGI HOUSEHOLD APPLIANCES FACTORY Q3 2014 H2 2015 SIBIU, CENTER REGION 9 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED MARTUR AUTOMOTIVE FACTORY PHASE 1 H1 2015 H1 2016 CATEASCA, SOUTH REGION 17 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED ROS ENERGY PELLETS FACTORY Q1 2015 H1 2016 NUFARU, SOUTH-EAST REGION 7 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED TARGOVISTE BUSINESS PARK Q1 2015 H1 2016 TÂRGOVIŞTE 17 300 SQM

INDUSTRIAL, WAREHOUSES PLANNED MEGA IMAGE LOGISTIC CENTER H2 2015 H2 2016 ILFOV, BUCHAREST-ILFOV REGION 30 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED NEXTCITY BYCICLE FACTORY H2 2015 H2 2016 HAŢEG. WEST REGION 34 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED LOG CENTER SIBIU H2 2015 H2 2016 SURA MICA, CENTER REGION 90 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED LOG CENTER BRASOV H2 2015 H2 2016 FELDIOARA, CENTER REGION 60 000 SQM

INDUSTRIAL, WAREHOUSES PLANNED KLG LOGISTIC CENTER Q4 2015 H2 2016 TURDA, NORTH-WEST REGION

INDUSTRIAL, WAREHOUSES PLANNED KAUFLAND LOGISTIC HALL Q1 2014 Q1 2015 TURDA, NORTH-WEST REGION 7 200 SQM

INDUSTRIAL, WAREHOUSES PLANNED ETI BISCUITS FACTORY Q1 2015 Q3 2015 DOLJ, SOUTH-WEST REGION 15 000 SQM

HOTEL ONGOING HOTEL MAMAIA Q4 2012 H1 2015 CONSTANTA, SOUTH-EAST REGION 8 000 SQM

HOTEL ONGOING HOTEL HAMPTON BY HILTON Q4 2013 H1 2015 IASI, NORTH-EAST REGION 7 000 SQM, 123 ROOMS (RENO)

HOTEL ONGOING BLAXY PREMIUM RESORT & HOTEL Q3 2014 Q4 2016 SOUTH OF CONSTANTA, BLACK SEA 35 000 SQM

HOTEL PLANNED HILTON GARDEN INN Q1 2015 Q4 2015 CONSTANTA, SOUTH-EAST REGION 10 000 SQM, 145 ROOMS

HOTEL PLANNED HOTEL ARK 5 STARS H1 2015 H2 2015 BRASOV, CENTER REGION 6 400 SQM

HOTEL PLANNED HILTON GARDEN INN H1 2015 H1 2016 CRAIOVA, SOUTH-WEST REGION 5 890 SQM, 108 ROOMS

HOTEL PLANNED HOTEL GEMI CENTER Q1 2015 H1 2016 ARAD, WEST REGION 5 000 SQM

EDUCATION ONGOING EXTREME LIGHT INFRASTRUCTURE - NUCLEAR PHYSICS FACILITY Q2 2013 Q2 2015 MAGURELE, BUCHAREST-ILFOV REGION 34 000 SQM

EDUCATION ONGOING CRAIOVA UNIVERSITY - MECHANICS FACULTY Q1 2014 H1 2016 CRAIOVA, SOUTH-WEST REGION 6 300 SQM (EXTENSION)

EDUCATION ONGOING CUMPANA SCHOOL CAMPUS Q3 2014 H1 2016 CONSTANTA, SOUTH-EAST REGION

EDUCATION ONGOING RESEARCH CENTER CAMPUS Q1 2014 Q4 2015 BUCHAREST, SECTOR 6 8 500 SQM

EDUCATION ONGOING ENDOCED LABORATORY Q2 2014 Q2 2015 BUCHAREST, SECTOR 1 1 500 SQM

KEY ONGOING AND PLANNED NON-RESIDENTIAL PROJECTS IN ROMANIA

(PLANNED) PLANNED SEGMENT STATUS NAME LOCATION VOLUME START END DRAGOMIRESTI VALE, BUCHAREST-ILFOV EDUCATION ONGOING VINTILA BRATIANU SCHOOL Q1 2014 Q4 2014 52 500 SQM (RENOVATION) REGION

EDUCATION PLANNED ADVANCED RESEARCH INSTITUTE Q4 2014 Q4 2015 TIMISOARA, WEST REGION 14 000 SQM

EDUCATION PLANNED SCIENTIFIC AND TECHNOLOGY PARK H2 2014 H1 2016 BUCHAREST, SECTOR 3 13 HA

EDUCATION PLANNED M. KOGALNICEANU HIGH SCHOOL Q4 2014 Q4 2015 SNAGOV, BUCHAREST-ILFOV REGION 8 100 SQM

EDUCATION PLANNED ROM-EST RESEARCH LABORATORY Q1 2015 H1 2016 RÂURENI, SOUTH-WEST REGION

HEALTH ONGOING DR.FOGOLYAN KRISTOF COUNTY HOSPITAL Q3 2014 Q1 2016 COVASNA, CENTER REGION 14 700 SQM (RENOVATION)

HEALTH ONGOING COUNTY HOSPITAL VALCEA Q1 2013 Q3 2015 RAMNICU VALCEA, SOUTH-WEST REGION 10 000 SQM (RENOVATION)

HEALTH ONGOING COUNTY HOSPITAL ALEXANDRIA Q4 2012 2015 ALEXANDRIA, SOUTH REGION 9 300 SQM (RENOVATION)

HEALTH ONGOING DR. VICTOR GOMOIU CHILDREN'S HOSPITAL Q4 2012 H1 2015 BUCHAREST, SECTOR 2 21 000 SQM (RENOVATION)

HEALTH ONGOING CITY HOSPITAL SUCEAVA Q1 2012 Q3 2015 SUCEAVA, NORTH-EAST REGION 16 000 SQM

HEALTH ONGOING SF. PANTELIMON EMERGENCY HOSPITAL Q1 2013 H1 2015 BUCHAREST, SECTOR 2 20 000 SQM (RENOVATION)

HEALTH ONGOING MEDICAL CLINIC Q3 2011 Q1 2015 BUCHAREST, SECTOR 1 10 000 SQM

HEALTH ONGOING FOISOR HOSPITAL Q2 2013 Q4 2017 BUCHAREST, SECTOR 2 13 000 SQM (EXTENSION)

EDUCATION PLANNED REGIONAL ONCOLOGY CENTER H2 2015 H1 2018 TIMISOARA, WEST REGION 22 000 SQM

EDUCATION PLANNED CITY HOSPITAL H1 2015 H2 2016 MIOVENI, SOUTH REGION 15 000 SQM

EDUCATION PLANNED EMERGENCY HOSPITAL PETROSANI Q1 2015 H2 2016 PETROSANI, WEST REGION 15 800 SQM (RENOVATION)

EDUCATION PLANNED PEDIATRIC HOSPITAL H1 2015 H2 2016 PLOIESTI, SOUTH REGION 10 000 SQM (RENOVATION)

TRANSPORT BUILDINGS ONGOING RAILWAY STATION TARGU MURES Q3 2014 H1 2018 TARGU MURES, CENTER REGION 10 MLN EUR (RENOVATION)

TRANSPORT BUILDINGS PLANNED AIRPORT INTERNATIONAL IASI Q1 2015 H2 2015 IASI, NORTH-EAST REGION 17 200 SQM (EXTENSION)

TRANSPORT BUILDINGS PLANNED GEORGE ENESCU INTERNATIONAL AIRPORT H1 2015 H1 2017 BACAU, NORTH-EAST REGION 4 700 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING ORTHODOX CATHEDRAL - CATEDRALA MANTUIRII NEAMULUI Q3 2011 H2 2017 BUCAHAREST, SECTOR 5 42 000 SQM

OTHER NON-RESIDENTIAL ONGOING NATIONAL THEATER BUCHAREST Q1 2011 Q4 2014 BUCHAREST, SECTOR 5 4 500 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING PALACE OF JUSTICE Q3 2012 Q4 2015 ORADEA, NORTH-WEST REGION 15 351 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING MULTIFUNCTIONAL SPORT HALL Q1 2014 Q3 2014 CLUJ-NAPOCA, NORTH-WEST REGION 38 400 SQM

OTHER NON-RESIDENTIAL ONGOING KRETZULESCU PARK Q2 2013 Q3 2015 CAMPULUNG, SOUTH REGION 35 000 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING PARKING BUILDING Q1 2014 H2 2015 BRASOV, CENTER REGION 8 900 SQM

OTHER NON-RESIDENTIAL ONGOING METROPOLITAN CATHEDRAL IASI Q3 2013 H2 2016 IASI, NORTH-EAST REGION 18 000 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING PALACE OF THE PATRIARCHATE Q1 2014 Q4 2015 BUCHAREST, SECTOR 4 16 000 SQM (RENOVATION)

OTHER NON-RESIDENTIAL ONGOING DEVESELU AIRBASE Q4 2013 Q3 2015 OLT, SOUTH-WEST REGION 108 HA

OTHER NON-RESIDENTIAL PLANNED CAPIDAVA FORTRESS Q4 2014 H2 2016 CONSTANTA, SOUTH-EAST REGION RENOVATION

OTHER NON-RESIDENTIAL PLANNED PARCUL TITAN PARKING H2 2015 H2 2016 BUCHAREST, SECTOR 3 21 000 SQM, 990 PARKING PLACES

OTHER NON-RESIDENTIAL PLANNED AQUATIC CENTER H2 2015 H2 2017 CRAIOVA, SOUTH-WEST REGION 8 500 SQM

OTHER NON-RESIDENTIAL PLANNED CONSTANTA ARENA Q4 2015 H2 2016 CONSTANTA, SOUTH-EAST REGION 7 HA

OTHER NON-RESIDENTIAL PLANNED DRACULA THEMATIC PARK Q3 2015 Q2 2016 BISTRITA-NASAUD, NORTH-WEST REGION 40 000 SQM

OTHER NON-RESIDENTIAL PLANNED UNDERGROUND PARKING AVRAM IANCU Q1 2015 Q1 2016 ARAD, WEST REGION 18 083 SQM

OTHER NON-RESIDENTIAL PLANNED UNDERGROUND PARKING PIATA ALBA IULIA Q2 2015 H2 2016 BUCHAREST, SECTOR 3 1 496 PARKING PLACES

OTHER NON-RESIDENTIAL PLANNED WATER UNIVERSE AQUAPARK H2 2015 H2 2016 DUDESTII NOI, WEST REGION EUR 15 MILLION

KEY ONGOING AND PLANNED CIVIL ENGINEERING PROJECTS IN ROMANIA

(PLANNED) PLANNED SEGMENT STATUS NAME LOCATION VOLUME START END

ROAD ONGOING OVERHEAD BRIDGE H2 2014 H2 2016 PITESTI, SOUTH REGION 500 M

ROAD ONGOING CENTURA CAREI Q1 2012 H2 2015

ROAD ONGOING OVERHEAD BRIDGE Q3 2014 H2 2015 BUCHAREST

ROAD ONGOING EXPRESS ROAD Q4 2014 Q4 2015 ORADEA, NORTH-WEST REGION 3.525 M

ROAD ONGOING TARGU MURES BYPASS ROAD Q3 2014 H2 2016 MURES, CENTER REGION 11 KM

ROAD ONGOING SUSPENDED ROUNDABOUT Q4 2013 Q3 2016 PRAHOVA, SOUTH REGION

ROAD ONGOING A 10 HIGHWAY, SEGMENT 3 Q4 2014 Q4 2015 ALBA, CENTER REGION 12.5 KM

ROAD ONGOING A 10 HIGHWAY, SEGMENT 4 Q4 2014 Q4 2015 CLUJ, NORTH-WEST REGION 16.3 KM

ROAD ONGOING A1 HIGHWAY, TIMISORARA-LUGOJ SEGMENT 2 Q1 2014 H2 2016 TIMIS, WEST REGION 25 KM

ROAD ONGOING A1 HIGHWAY, NADLAC-ARAD SEGMENT 1 Q1 2014 Q4 2014 ARAD, WEST REGION 22.2 KM

ROAD ONGOING A1 HIGHWAY, NADLAC-ARAD SEGMENT 2 Q2 2014 Q4 2015 ARAD, WEST REGION 16.7 KM

ROAD ONGOING A3 HIGHWAY BUCHAREST-PLOIESTI SEGMENT 1 2008 Q4 2015 BUCHAREST-PLOIESTI 19.5 KM

ROAD PLANNED BRASOV BYPASS SECTION 1 Q4 2014 H2 2015 BRASOV, CENTER REGION 7.29 KM

ROAD PLANNED ALESD BYPASS ROAD H2 2015 H1 2017 BIHOR, NORTH-WEST REGION 13 KM

ROAD PLANNED STEI BYPASS ROAD H2 2015 H2 2017 BIHOR, NORTH-WEST REGION 28 KM

ROAD PLANNED SLATINA BYPASS ROAD H2 2015 H2 2017 OLT, SOUTH-WEST REGION 8 KM

ROAD PLANNED SATU MARE BYPASS ROAD H2 2015 H2 2017 SATU-MARE, NORTH-WEST REGION 13.5 KM

ROAD PLANNED TÂRGU JIU BYPASS ROAD Q1 2015 H2 2016 GORJ, SOUTH-WEST REGION 20 KM

ROAD PLANNED CARACAL BYPASS ROAD H1 2015 H2 2016 OLT, SOUTH-WEST REGION 11 KM

ROAD PLANNED A 10 HIGHWAY, SEGMENT 1 Q1 2015 H2 2016 ALBA, CENTER REGION 17 KM

ROAD PLANNED A 10 HIGHWAY, SEGMENT 2 Q1 2015 H2 2016 ALBA, CENTER REGION 24.3 KM

ROAD PLANNED A1 HIGHWAY, LUGOJ-DEVA, SEGMENT 2, 3, 4 Q2 2014 H2 2016 WEST REGION 79.3 KM

ROAD PLANNED A1 HIGHWAY, SIBIU-PITESTI Q2 2017 Q2 2020 CENTER AND SOUTH REGIONS 116 KM

ROAD PLANNED A3 HIGHWAY COMARNIC-BRASOV H2 2015 H2 2017 CENTER AND SOUTH REGIONS 58 KM

RAILWAY ONGOING RAILWAY CORRIDOR IV, SECTION 1 Q1 2012 Q2 2016 BORDER - CURTICI - ARAD, WEST REGION 41.1 KM (EUR 244 MLN)

RAILWAY ONGOING RAILWAY CORRIDOR IV, SECTION 5 Q2 2012 Q2 2016 COSLARIU – SIGHISOARA, CENTER REGION 91.6 KM (EUR 528 MLN)

RAILWAY ONGOING RAILWAY CORRIDOR IV, SECTION 4 Q2 2012 H2.2015 VINTU DE JOS – COSLARIU, CENTER REGION 33.1 KM (EUR 173 MLN)

RAILWAY ONGOING RAILWAY CORRIDOR IV, SECTION 3 Q2 2014 H1 2017 SIMERIA – VINTU DE JOS, CENTER REGION 42.7 KM (EUR 320 MLN)

RAILWAY PLANNED RAILWAY CORRIDOR IV, SIGHISOARA - BRASOV H1 2015 H2 2017 SIGHISOARA - BRASOV, CENTER REGION 130 KM

OTHER TRANSPORT INFRA ONGOING ORADEA INTERNATIONAL AIRPORT - RUNWAY Q3 2014 H1 2015 ORADEA, NORTH-WEST REGION 2 100 M

OTHER TRANSPORT INFRA ONGOING AIRPORT STEFAN CEL MARE Q3 2013 Q1 2015 SUCEAVA, NORTH-EAST REGION 2 460 M, 1 240 SQM

OTHER TRANSPORT INFRA ONGOING SUBWAY - M5 LINE Q3 2011 H2 2016 BUCHAREST 10 KM

OTHER TRANSPORT INFRA ONGOING AIRPORT MIHAIL KOGALNICEANU H1 2014 H2 2015 CONSTANTA, SOUTH-EAST REGION 155 253 SQM

OTHER TRANSPORT INFRA ONGOING NORTHERN BREAKWATER EXTENSION Q3 2013 H1 2015 CONSTANTA, SOUTH-EAST REGION 1 005 M

OTHER TRANSPORT INFRA ONGOING MIHAI EMINESCU TUNNEL Q1 2012 Q4 2014 IASI, NORTH-EAST REGION 287 M

OTHER TRANSPORT INFRA ONGOING VIADUCT Q2 2014 H2 2015 SIBIU, CENTER REGION 4 300 SQM

OTHER TRANSPORT INFRA ONGOING RAILWAY BRIDGE Q3 2013 H1 2015 SUCEAVA, NORTH-EAST REGION

OTHER TRANSPORT INFRA ONGOING NICOLINA TUNNEL Q2 2013 Q1 2015 IASI, NORTH-EAST REGION 15 560 SQM

OTHER TRANSPORT INFRA PLANNED SUBWAY - M7 LINE H1 2016 H1 2020 BUCHAREST 25 KM

OTHER TRANSPORT INFRA PLANNED SUBWAY -M6 LINE Q4 2015 H1 2020 BUCHAREST 16 KM

OTHER TRANSPORT INFRA PLANNED SUBWAY - M4 LINE H2 2018 H2 2020 BUCHAREST 15 KM

OTHER TRANSPORT INFRA PLANNED RAILWAY TUNNEL RENOVATION H2 2015 H2 2016 SUCEAVA, NORTH-EAST REGION 255 M

OTHER TRANSPORT INFRA PLANNED TULCEA DANUBE DELTA AIRPORT H2 2014 H1 2015 TULCEA, SOUTH-EAST REGION 52 150 SQM

OTHER TRANSPORT INFRA PLANNED MILITARY AIRPORT Q1 2015 Q4 2015 OTOPENI, ILFOV 1 321 M

OTHER TRANSPORT INFRA PLANNED BRASOV-GHIMBAV AIRPORT - RUNWAY AND PARKING Q2 2015 Q1 2016 GHIMBAV 17 700 SQM

ENERGY , LONG PIPELINES ONGOING PAROSENI THERMAL POWER PLANT Q3 2013 Q4 2015 HUNEDOARA, WEST REGION RENOVATION

ENERGY , LONG PIPELINES PLANNED MINTIA THERMAL POWER PLANT H2 2015 H2 2017 MINTIA, WEST REGION 5 000 SQM

ENERGY , LONG PIPELINES PLANNED SOLAR PLANT H1 2015 H1 2016 HARGHITA, CENTER REGION 30 MW

ENERGY , LONG PIPELINES PLANNED ROVINARI THERMAL POWER PLANT Q1 2015 2018 ROVINARI, SOUTH-WEST REGION 500 MW

ENERGY , LONG PIPELINES PLANNED PUMPED-STORAGE HYDROELECTRIC POWER STATION H2 2015 H1 2022 TARNITA-LAPUSTESTI, CENTER REGION 1 000 MW

ENERGY , LONG PIPELINES PLANNED THERMAL POWER PLANT H1 2015 H2 2017 MURES, CENTER REGION 250 MW

ENERGY , LONG PIPELINES PLANNED OIL STORAGE FACILITY 160 VIDELE Q4 2014 H1 2016 VIDELE, SOUTH REGION

ENERGY , LONG PIPELINES PLANNED ALFRED NUCLEAR REACTOR H1 2017 2025 MIOVENI, SOUTH REGION 130 MW

ENERGY , LONG PIPELINES PLANNED NUCLEAR POWER PLANT UNIT 4 AND 5 2017 2021 CERNAVODA, SOUTH-EAST REGION 1440 MW

OTHER CIVIL ENGINEERING ONGOING WASTE AND COMPOST MANAGEMENT FACILITY Q2 2014 Q2 2015 COVASNA, CENTER REGION 2,100 SQM

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q2 2014 H2 2015 SATU MARE, NORTH-WEST REGION EUR 126 MILLION

OTHER CIVIL ENGINEERING ONGOING MAMAIA PROMENADE Q1 2014 Q4 2014 MAMAIA, SOUTH-EAST REGION RENOVATION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q2 2013 Q4 2014 GALATI, SOUTH-EAST REGION EUR 130 MILLION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q1 2013 Q1 2016 BACAU, NORTH-EAST REGION EUR 120 MILLION

OTHER CIVIL ENGINEERING ONGOING PUMPING STATION Q1 2014 Q3 2015 HUNEDOARA, WEST REGION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT H2 2014 2016 PRAHOVA, SOUTH REGION EUR 146 MILLION

KEY ONGOING AND PLANNED CIVIL ENGINEERING PROJECTS IN ROMANIA

(PLANNED) PLANNED SEGMENT STATUS NAME LOCATION VOLUME START END

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q4 2013 H2 2015 PRAHOVA, SOUTH REGION

OTHER CIVIL ENGINEERING ONGOING PUMPING STATION Q2 2014 Q2 2015 SIBIU, CENTER REGION

OTHER CIVIL ENGINEERING ONGOING PUMPING STATION LUDUS AND IERNUT Q1 2014 H2 2015 MURES, CENTER REGION RENOVATION

OTHER CIVIL ENGINEERING ONGOING SANITARY SEWER Q3 2014 H1 2016 PRAHOVA, SOUTH REGION 37 KM (EXTENSION)

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q2 2012 Q1 2015 TIMIS, WEST REGION EUR 119 MILLION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q2 2012 2015 TARGU MURES, CENTER REGION EUR 116 MILLION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q3 2013 Q4 2015 BOTOSANI, NORTH-EAST REGION EUR 102 MILLION

TOTAL COST 150 MILLION EUR, OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q1 2013 2014-2015 DOLJ, SOUTH-WEST REGION EBRD

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q1 2013 H2 2015 MARAMURES, NORTH-WEST REGION EUR 148 MILLION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT 2013 H2 2016 SIBIU, CENTER REGION EUR 132 MILLION

PROTECTION AND REHABILITATION OF THE CONSTANTA - EFORIE NORTH, SOUTH-EAST OTHER CIVIL ENGINEERING ONGOING Q3 2013 Q2 2015 EUR 170 MILLION SOUTHERN BLACK SEE COAST, PHASE 1 REGION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER MANAGEMENT Q2 2014 Q3 2015 PETRESTI, GAESTI, SOUTH REGION EUR 5 MILLION

OTHER CIVIL ENGINEERING ONGOING WASTE WATER AND WATER MANAGEMENT Q3 2014 H1 2016 TARGU MURES, CENTER REGION EUR 10 MILLION

OTHER CIVIL ENGINEERING PLANNED TEI PLUMBUITA RECREATION PARK Q1 2015 H1 2016 BUCHAREST, SECTOR 2 75 000 SQM

OTHER CIVIL ENGINEERING PLANNED PUMPING STATION Q2 2013 Q1 2015 BISTRITA-NASAUD, NORTH-WEST REGION

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT PLANT Q4 2014 Q3 2015 PRAHOVA, SOUTH REGION 1.5 HA

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT PLANT H1 2015 Q4 2016 DOLJ, SOUTH-WEST REGION 44 000 TONS/YEAR

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT PLANT Q4 2014 H2 2015 PRAHOVA, SOUTH REGION 30 400 TONS/YEAR

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT FACILITY H1 2015 Q1 2017 CONSTANTA, SOUTH-EAST REGION 21 000 TONS/YEAR

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT FACILITY Q4 2014 H1 2016 CONSTANTA, SOUTH-EAST REGION EUR 6.7 MILLION

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT PLANT H2 2014 H1 2016 BRAILA, SOUTH-EAST REGION 286 000 TONS

OTHER CIVIL ENGINEERING PLANNED WATER MANAGEMENT PLANT Q4 2014 H1 2015 MURES, CENTER REGION 1 000 M3/DAY

OTHER CIVIL ENGINEERING PLANNED PUMPING STATION AND SEWERAGE SYSTEM Q3 2014 H2 2016 MARAMURES, NORTH-WEST REGION EXTENSION RENOVATION

NEW CONSTRUCTION OTHER CIVIL ENGINEERING PLANNED WASTE WATER AND WATER MANAGEMENT Q1 2015 H2 2016 ILFOV, BUCHAREST-ILFOV REGION RENOVATION

OTHER CIVIL ENGINEERING PLANNED WASTE WATER AND WATER MANAGEMENT Q1 2014 Q4 2015 DEVA, VEST REGION EUR 106 7 MILLION

PROTECTION AND REHABILITATION OF THE EFORIE NORTH - VAMA VECHE, OTHER CIVIL ENGINEERING PLANNED 2015 H2 2020 20 KM SOUTHERN BLACK SEE COAST, PHASE 2 SOUTH-EAST REGION

OTHER CIVIL ENGINEERING PLANNED WASTE DEPOSIT Q4 2014 H1 2016 TORTOMAN, SOUTH-EAST REGION 10 000 SQM

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT FACILITY Q1 2015 Q4 2015 VADENI, SOUTH-EAST REGION 30 000 TONS/YEAR

OTHER CIVIL ENGINEERING PLANNED WASTE MANAGEMENT FACILITY Q1 2015 Q4 2017 REMETEA, CENTER REGION 23 000 TONS/YEAR

OTHER CIVIL ENGINEERING PLANNED PUMPING STATION Q1 2015 Q4 2015 TITU, SOUTH REGION EUR 6 MILLION

OTHER CIVIL ENGINEERING PLANNED WASTE WATER MANAGEMENT Q1 2015 Q1 2016 MEHEDINTI, STREHAIA, SOUTH-WEST REGION 11 600 SQM

OTHER CIVIL ENGINEERING PLANNED WASTE WATER MANAGEMENT H1 2015 H2 2016 SIBIU, CENTER REGION EUR 4 7 MILLION

OTHER CIVIL ENGINEERING PLANNED WASTE DEPOSIT Q4 2014 Q4 2017 REMETEA, CENTER REGION 450 000 M3

OTHER CIVIL ENGINEERING PLANNED GLINA WASTE WATER TREATMENT PLANT PHASE 2 H1 2015 H1 2018 GLINA, BUCHAREST-ILFOV REGION EUR 152 MILLION

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