Ref. Ares(2019)7256156 - 25/11/2019 European Construction Sector Observatory Policy fact sheet Romania National Programme for Buildings of Public or Social Interest (PNCIPS) Thematic objective 1 September 2019 1 Policy fact sheet Programme for Buildings of Public or Social Interest In a nutshell Implementing Ministry of Regional accession instruments through which the EU body Development and Public provides financial assistance to Central and Eastern Administration (Ministerul European candidate countries. Dezvoltarii Regionale si One of the development programmes that the Administratiei Publice – Romanian government was able to launch with the MDRAP) through the help of PHARE funding was the National Programme National Investment for Buildings of Public or Social Interest Company (Compania (Programului Național de Construcții de Interes Nationala de Investitii - CNI). Public sau Social, PNCIPS). Launched in 2002 by the Key features & National programme to Ministry of Regional Development and Public objectives promote and support the Administration (Ministerul Dezvoltarii Regionale si construction, rehabilitation Administratiei Publice – MDRAP), it aimed to: and upgrading of buildings of public or social interest at Improve local infrastructure in urban areas to local level. attract private investment, rehabilitate the Implementation 2001 – CNI established; urban environment and improve quality of life date 2002 – present for communities, especially in more (implementation ongoing). disadvantaged areas; Rehabilitate historical, cultural and social Targeted Owners of buildings of public heritage buildings and spaces to create an beneficiaries and social interest (e.g. attractive environment for communities, public authorities, public businesses and tourists. institutions, private entities and persons), as well as Over the years, PNCIPS has supported the citizens that make use of implementation of over 2,000 projects that have those buildings. helped to modernise public infrastructure, as well Targeted sub- Institutional and as constructing or rehabilitating large numbers of sectors commercial, residential, civil cultural and social buildings and environments in engineering and roads. local communities across the country. Budget (EUR) Approx. 106 million (RON Today, PNCIPS remains an ongoing support 500 million) annually since measure. It is currently implementing over 300 2016. investment projects amounting to over EUR 312 Good practice million by 2020. The majority of the ongoing projects are focused on constructing, rehabilitating Transferability or updating buildings of cultural significance or for sporting use. Programme objectives for 2019-2020 Romania’s transition from a socialist economy to a are also ambitious, particularly in preparation for more market-driven economy began in the 1990s. major sporting events such as Euro 2020, the Economic reform was however slower than European football championship. Significant work expected throughout that decade and the country on a range of hospital and academic facilities is also experienced a difficult period of economic decline. planned. The economy began to recover in 2000, boosted by Romania’s accession negotiations with the EU (prior PNCIPS has been broadly successful to date. It to accession in 2007). As part of the accession has supported the delivery of long-term negotiation process, the Romanian government was investment projects that are providing able to access EU financial support through the significant value to local communities. PHARE Programme, which is one of three pre- European Construction Sector Observatory 2 Policy fact sheet Programme for Buildings of Public or Social Interest However, there are aspects of the programme that procurement process, the appropriateness of are in need of reform. The procurement process, for funding awarded to projects and how that funding example, would benefit from greater transparency is used. in order to give the public confidence in the European Construction Sector Observatory 3 Policy fact sheet Programme for Buildings of Public or Social Interest 1. General description The National Programme for Buildings of Public or Swimming pools, also including polo pools and Social Interest (PNCIPS) is being implemented by the teaching-school basins, as well as the finalisation National Investment Company (Compania of ongoing infrastructure work with the purpose Nationala de Investitii - CNI), which was set up by of allowing the development of this discipline at the Ministry of Regional Development and Public national level; Administration through the Government Ordinance Sport complexes, including support to aid the Nr. 25/2001. The CNI is a legal entity that functions completion of structures under construction, in as a joint stock company1. According to Article 6 of order to provide the necessary infrastructure for the Ordinance2, the main objectives of the CNI are the organisation of large-scale sporting events to: and competitions. For instance, the Implement the National Programme for development of the necessary infrastructure for buildings of public or social interest; the football Euro 2020 falls under this sub- programme; Identify financial resources to support the National Programme for buildings of public or Cultural establishments, the purpose of which is social interest; to improve the quality of cultural life in small urban environments by expanding and Develop proposals for sub-programmes of the supporting the transformation of existing National Programme for buildings of public or cultural infrastructures into community centres social interest for the Ministry of Regional and by diversifying the cultural offer; Development and Public Administration; Public higher education institutions, with priority Coordinate marketing, advertising, publishing given to building rehabilitation or upgrading; and printing activities in this field of activity; Artificial skating rinks for use in national and Acquire, develop or sell technology in this field of international competitions, as well as for activity; pedagogic, school and recreational purposes; Create or sell projects in this field of activity; Urban sanitary units, with the aim of Provide specific services to investors that finance modernising and rehabilitating existing health the National Programme for Buildings of Public units in urban areas, and improving hospital or Social Interest. conditions; The programme is regulated in Annex 3 of the Cinema halls, with priority given to building Ordinance Nr. 25/20013. Any type of construction rehabilitation or upgrading, especially in cities that is designed to meet the material and socio- where leisure opportunities are limited; cultural needs of local communities is considered to Emergency works, such as the rehabilitation of be of public or social interest. Following a legal the road infrastructure or the strengthening of reform in 2014, the sub-programmes4 of the buildings to prevent and mitigate the effects of National Programme were increased to include natural disasters (e.g.: earthquakes, floods, support for the construction or rehabilitation of a landslides, etc.); wider range of buildings or infrastructure projects: Residential buildings in disadvantaged areas, Sports halls, with priority given to the with priority given to the rehabilitation of construction of new sports halls near buildings that are suffering from severe educational institutions – e.g.: gyms with a structural degradation and/or have serious capacity of 100 seats or sport halls with a deficiencies in their isolation systems; capacity of 180 seats; European Construction Sector Observatory 4 Policy fact sheet Programme for Buildings of Public or Social Interest Other objectives approved by the Ministry of completion, the CNI returns the construction site Regional Development and Public with the investment objectives achieved in Administration (e.g. improving the infrastructure compliance with the legal provisions in force. The of court offices, construction of buildings for the beneficiaries are obliged to maintain the building for care of disabled and elderly people, a minimum period of 15 years10. rehabilitation of monuments, etc.); Funding for the implementation of PNCIPS is Integrated systems for the rehabilitation of sourced from different channels. Those can be the water supply and sewerage systems, drinking state budget, the budgets of the local public and waste water treatment plants in localities authorities, reimbursable funds guaranteed under 5 with a population of up to 50,000 residents . the Government Emergency Ordinance Nr. The main objective of all projects is to provide 64/200711, beneficiaries’ own revenues, donations added value to local communities, not only in and sponsorships, as well as any other legal terms of real investments in regional sources12. Figure 1 provides an overview of the development, but also by improving the living annual budget allocation over the last 15 years. standards of all Romanians. Figure 1: Annual budget allocation, 2003-2017 The main beneficiaries of PNCIPS are national and (RON) local public authorities. Other beneficiaries are public institutions and institutions of public interest, as well as legal entities, recognised as being of public utility under the law and other entities operating under special laws, including natural and legal persons in the case of the Emergency works sub-programme6. The following categories of services and works can be financed7: Design Extension