Projects in Romania

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents 

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb)  

Case studies

EBRD pioneers energy efficiency facility for Romania

In January 2008 the EBRD launched its first ever credit facility to finance energy efficiency projects by private industrial companies in Romania under the EU/EBRD Energy Efficiency Facility. This is a joint programme of the European Commission and the EBRD to provide up to €100 million in credits to banks involved in lending for energy efficiency projects in Bulgaria and Romania.

Introducing energy efficiency at the level of Romanian businesses, will mitigate the impact of climate change. The programme is complemented by €24 million of EU grant funding from the Phare programme, for technical assistance to support energy efficiency projects and incentivize kick-start investments.

The facility will encourage enterprises to make better use of energy resources and will assist them in mitigating the impact of increasing energy prices and reducing the high energy intensity of Romanian industry.

This project will also help Romania meet its obligations as an EU member state, contributing to the reduction of the energy wastage. The EBRD will help the participating banks to build up their own expertise in this area by combining its energy efficiency mandate and tailored technical consultant services within a commercially viable framework.

Under the new framework, the Bank has signed three loans: €20 million for the Banca Comerciala Romana (BCR), €10 million for CEC and €5 million for Banca Transilvania (BT).

Energy efficiency is a key priority for the EBRD. The new EU/EBRD facility for Romania is expected to replicate the successes already achieved with similar arrangements in neighbouring Bulgaria, Ukraine and Slovakia.

Assisting the development of micro, small and medium-sized enterprises

The EBRD strengthens the support for micro, small and medium-sized enterprises in Romania through loans for SMEs and facilities for micro credit entities.

In December 2007, BANK LEUMI Romania received a credit line of €10 million to finance small and medium-sized enterprises active in the industrial, construction, trade and services sectors in the country. Sub-loans under the credit line will typically not exceed €125,000. Technical assistance funds amounting to €300,000 will be made available to help with training of loan officers in credit analysis and loan monitoring of products.

In May 2007, Casa de Economii si Consemnatiuni SA, the oldest commercial bank in Romania started a €10 million rural facility, to promote private-sector growth in the rural areas of the country. The funding, under the EU/EBRD SME Finance Facility, is being used to provide loans to farms and small enterprises in rural areas with no more than 50,000 inhabitants, for amounts of up to €125,000. Funds for technical assistance from the EU complement the loan.

The EBRD has intensified its support for Romania’s micro, small and medium-sized enterprises (MSMEs). To date, the EBRD has invested over €215 million in loans that are helping to stimulate the establishment of new businesses, creating jobs and supporting economic growth in Romania.

A new law passed in 2006 is helping to facilitate the registration and licensing of microfinance institutions outside the banking sector.

In December 2006 the Romania Micro Credit Facility (RMCF) was launched to improve access to finance for MSMEs. Some €40 million has been provided by the EBRD for senior loans to commercial banks and to microfinance institutions outside the banking sector for on-lending to MSMEs, including start-ups. The EBRD’s funds are being complemented by up to €30 million of commercial co-financing and up to €12.5 million from the EU and the Romanian government. Loans are typically below €10,000 and are provided through local financial institutions. Financing is targeted at businesses employing less than ten people.

One of the first institutions to benefit from the RMCF was Opportunity Micro Credit Romania (OMRO), a microfinance institution based in Targu Mures which operates in Transilvania and Central Romania. Some 70 per cent of the RON 9.8 million loan has been provided by the EBRD, with the remaining 30 per cent by the European Union and the Romanian government. To date, OMRO has disbursed 828 loans totalling € 2,944,818 million to MSMEs. As of September 2007, 27.3% of these loans had been extended to start-up MSMEs. A further €150,000 has been provided to OMRO in the form of donor-funded technical assistance to enhance the institution’s capacity to lend to the smallest of businesses.

Express Finance has also benefited from RMCF financing. Based in Timisoara in the western part of Romania, this non-bank institution has been active in Romania through 17 offices, in partnership with local non-governmental organisations (NGOs), business and housing associations and chambers of commerce. Express Finance focuses on two key sectors: MSMEs and energy efficiency projects for homes and enterprises. In September 2007, Express Finance received a €2.25 million loan from the RMCF to increase its lending to MSMEs. The loan has been financed by the EBRD, the Romanian government and the EU. This finance is being supported by €150,000 in technical assistance to expand Express Finance’s rural financing, including agricultural lending, to introduce new MSME products and to strengthen regional management.

In August 2007, Banca Transilvania was the first commercial bank in Romania that received a loan for MSME lending of €15 million. Some 40 per cent of the loan was financed by the EBRD, 25 per cent by the Romanian government and the EU, with the remaining 35 per cent syndicated to the Spanish bank Caja Madrid. The loan will be supported by technical assistance.

Developing the agribusiness sector

The EBRD has significantly assisted Romania in developing its agribusiness sector. EBRD support has included loans and equity investments in local and foreign-owned companies as well as financing for micro, small and medium-sized enterprises to help them strengthen their position in the market, to diversify and to expand their activities.

The EBRD has recently supported two new projects: Tnuva Dairy and Soufflet malt plant. Both are important projects for the development of agribusiness in Romania. Apart from offering new employment opportunities, they will also introduce modern production facilities in line with EU standards.

The EBRD’s equity investment in the Israeli company Tnuva has supported the establishment of a new dairy plant and milk farm with a manufacturing capacity of 60 million litres per year. The plant focuses on producing a variety of fresh dairy products under the Yoplait brand name and its own Tnuva brand.

The dairy plant was built in 2006 in full compliance with EU standards. Tnuva has also developed a state-of-the-art dairy farm and feeding centre to act as a showcase for local farmers, to improve the local milk quality and to enhance environmental and hygiene procedures.

In mid-2007, Tnuva launched its first dairy products on the Romanian market and is expanding its range of fresh dairy items.

The project is helping Romania to meet the growing demand for milk products and to raise the standards of milk production. Tnuva offers products produced exclusively from Grade A raw milk, and in compliance with EU requirements.

EBRD financing for the Soufflet Group - a French company and the world leader in malt production - has supported the development of a new malt plant in Buzau in south-eastern Romania.

The project will help to bolster the local farming community and to increase the volume of malted barley available to local breweries. Malt will be produced from barley to be grown locally, often in the vicinity of the new plant which is scheduled to start operations in September 2008. It will be equipped with modern technology and machinery which is expected to substantially reduce energy consumption. Furthermore, Soufflet is committed to applying the latest techniques for safeguarding the environment.

Support for the liberalisation and privatisation of the gas and electricity sectors

Romania has one of the largest gas markets in eastern Europe in terms of consumption and was the first country to use gas for industrial purposes.

Through an agreement to acquire 9.8 per cent stakes in two Romanian energy holding companies, majority-owned by Germany’s E.ON Group, the EBRD will have an indirect 5 per cent stake in E.ON Gaz Romania, a gas distribution company supplying northern Romania. It will also have an indirect 5 per cent stake in E.ON Energie Moldova, an electricity distribution company supplying north-eastern Romania.

This project will support the ongoing privatisation, liberalisation and modernisation of Romania’s electricity and gas sectors in line with EU directives on power and gas. It will assist the further development of the Energy Community of South Eastern Europe. It also supports E.ON Group’s strategy to strengthen operations in Romania.

Gaz de France, the EBRD and the International Finance Corporation (IFC) have also teamed up to improve gas distribution services for around 1 million households and businesses in southern Romania.

Gaz de France International, a subsidiary of French gas giant Gaz de France, recently acquired a 51 per cent stake in the Romanian gas distribution company Distrigaz Sud. The EBRD and the IFC each acquired a 5.1 per cent stake in the company to support its activities and to improve gas distribution networks in the country.

The project supports the first private participation in Romania’s gas distribution sector and will help to liberalise one of the largest gas markets in eastern Europe. The transaction supports liberalisation of the gas sector in Romania in line with the EU directive on gas, and also with the objectives of the Energy Community of South Eastern Europe.

Project-related correspondence

Letter from Direct Civic Action  (0.1Mb) - 15 Feb 2008

EBRD's response  (0.4Mb) - 26 Feb 2008