Draft ROP2005 1135771671

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					   MINISTRY OF EUROPEAN INTEGRATION




           ROMANIA
              Dr a f t
  REGIONAL OPERATIONAL
       PROGRAMME
“REGIONAL DEVELOPMENT”
          2007-2013




             November 2005
TABLE OF CONTENTS


INTRODUCTION ............................................................................................................ 5
I.              SITUATION ANALYSIS OF THE ROMANIAN REGIONS ............................... 11
II.             REGIONAL DEVELOPMENT STRATEGIC OBJECTIVES ............................. 12
III.            THE PRIORITIES OF THE ROP .................................................................... 13
      III.1     Priority 1: Improvement of regional and local public infrastructure ......... 20
      III.2     Priority 2: Strengthening of regional and local business environment .... 36
      III.3     Priority 3: Development of regional and local tourism .............................. 46
      III.4.   Priority 4: Sustainable urban development ................................................ 54
      III.5     Priority 5: Technical assistance .................................................................. 67
IV.             FINANCING PLAN OF THE ROP ................................................................... 74
V.              COMPLEMENTARITY OF ROP OPERATIONS WITH OTHER SF CO-
                FINANCED ACTIONS .................................................................................... 75
      V.1       Complementarity with other programmes co-financed by the ERDF and the ESF
                ....................................................................................................................... 75
      V.2       Complementarity with operations co-financed by the European Agricultural Fund
                ....................................................................................................................... 75
VI.             IMPLEMENTATION ARRANGEMENTS FOR THE ROP ................................ 76
      VI.1 Introduction ........................................................................................................ 76
      VI.2 Management ...................................................................................................... 76
      VI.3 Monitoring and evaluation ............................................................................... 76
      VI.4 Financial management and control .................................................................... 83
      VI.5 Information and Publicity .................................................................................... 83
      VI.6 Management Information System (MIS) ............................................................. 83
ANNEX 1: Global Indicators for ROP 2007-2013 .......................................................... 84
ANNEX 2: Flowchart on financial management and control .......................................... 85
ANNEX 3: State aid table .............................................................................................. 86
ANNEX 4: Statistical tables & maps .............................................................................. 87




Draft Regional Operational Programme of Romania – October 2005                                                                         2
LIST OF ACRONYMS AND ABBREVIATIONS
ARIS               Romanian Agency for Foreign Investments
BSS                Business Support Structures
CEE                Central and Eastern European Countries
EBRD               European Bank for Reconstruction and Development
EC                 European Commission
ECA                Europe and Central Asia
EDIS               Extended Decentralised Implementation System
ERDF               European Regional Development Fund
ESC                Economic and Social Cohesion
ESF                European Social Fund
EU                 European Union
EUR                Euro
FDI                Foreign Direct Investment
GDP                Gross Domestic Product
GDRD               General Directorate for Regional Development (MEI)
GS                 Grant Scheme
HRD                Human Resources Development
IB                 Intermediate Body
ICT                Information and Communications Technologies
INS                National Institute for Statistics
IRIS               Integrated Regional Information System
ISPA               Pre-Accession Structural Instrument
JAP                Joint Assessment Paper
JIM                Joint Inclusion Memorandum
MA                 Management Authority
MAI                Ministry of Administration and Interior
MARR               Mining Affected regions Reconstruction
MEI                Ministry of European Integration
MER                Ministry of Education and Research
MLFSS              Ministry of Labor, Family and Social Security
MOC                Ministry of Culture
MOH                Ministry of Health
MPF                Ministry of Public Finances
MTCT               Ministry of Transport, Constructions and Tourism
MEWM               Ministry of Environment and Water Management
NASMEC             National Agency for Small and Medium Enterprises and Co-
                   operatives
NBRD               National Board for Regional Development
NDP                National Development Plan
NGO                Non-governmental Organization
NIRDT              National Institute for Research & Development in Tourism
NPAA               National Programme for the Adoption of the Acquis
NUTS               Official Nomenclature of Territorial Units for Statistics
OP                 Operational Programme
R&D                Research and Development
Draft Regional Operational Programme of Romania – October 2005                 3
RAI                Regions’ Attractiveness Index
RDA                Regional Development Agency
RDB                Regional Development Boards
RDI                Research, Development and Innovation
RDP                Regional Development Plan
ROP                Regional Operational Programme
SAPARD             Special Programme for Pre-Accession Aid for Agriculture
                   and Rural Development
SF                 Structural Funds
SME                Small and Medium-sized Enterprises
SOP                Sectoral Operational Programme
SWOT               Strengths, Weaknesses, Opportunities and Threats
TAIEX              Technical Assistance Information Exchange Unit
UNDP               United Nations Development Programme
USAID              US Agency for International Development
WB                 World Bank




Draft Regional Operational Programme of Romania – October 2005               4
INTRODUCTION

The Regional Operational Programme (ROP) “Regional Development” represents
one of the six programmes, which will be implemented under the EU Structural
Funds (SF) and the Agricultural Fund assistance in Romania in the period 2007-
2013.
The five Sectoral Operational Programmes (SOP) are:
         Increasing Economic Competitiveness (co-financed by the ERDF)
         Transport Infrastructure   (co-financed by the ERDF and the Cohesion
          Fund)
         Environment Infrastructure (co-financed by the ERDF)
         Human Resources Development (co-financed by the ESF)
         Agriculture, Rural Development and Fisheries (co-financed by the
          European Agricultural Fund for Rural Development)
The Romanian ROP is presented in respect with the provisions on NUTS II and
NUTS III regions of the EC Regulation No. 1059/2003 on the establishment of a
common statistical classification of territorial units for statistics. It covers all eight
(8) NUTS II Romanian regions1, as follows:
Region 1: North–East Region
Region 2: South–East Region
Region 3: South Region
Region 4: South–West Region
Region 5: West Region
Region 6: North–West Region
Region 7: Center Region
Region 8: Bucharest Region
Romanian regions are non-administrative units, without legal personality.
Nevertheless, they represent the framework for drawing up, implementing and
assessing the regional development policy, as well as the economic and social
cohesion programmes. The regions represent the framework for collecting specific

1
    According to EGO No. 75/2001

Draft Regional Operational Programme of Romania – October 2005                        5
statistical data, according to the European regulations issued by EUROSTAT for
the NUTS II territorial level.
NUTS classification of Romania
    NUTS corresponding                                                          No of units
                                                    Unit
           level                                                                (June 2004)
               I                 Romania                                             1
              II                 Regions                                             8
             III                 Counties and Bucharest Municipality                42
All Romanian NUTS II regions demonstrate a per capita Gross Domestic Product
(GDP) of less than 75% of the Community average 2. They are therefore all eligible
for funding from the Structural Funds under the “Convergence” objective, as
specified in Art. 5 (Chapt. 3) of the draft General Structural Funds Regulation of
July 20043. The ROP regional coverage is illustrated in the map below:




The situation analysis of the Romanian regions and their socio-economic
development characteristics are analyzed in the chapter 1 of the present draft ROP
document.
The priorities of the ROP have been specified by the Ministry of European
Integration, in partnership with the appropriate stakeholder organizations at
national and regional level. Broad involvement of a large and effective partnership
with social and other relevant partners has been achieved through a wide
consultation process with the following authorities and bodies:



2
  Please refer to the analysis provided in chapter 1.2
3
  Brussels, COM(2004) 492final, Proposal for a COUNCIL REGULATION laying down general provisions on
the European Regional Development Fund, the European Social Fund and the Cohesion Fund.

Draft Regional Operational Programme of Romania – October 2005                                 6
a) The competent regional, local, urban and other public authorities, including the
Regional Development Agencies;
b) The line Ministries and government agencies and in particular, the Ministry of
Public Finance (MPF), the Ministry of Economy and Trade, the Ministry of
Education and Research (MER), the Ministry of Health (MoH), the Ministry of
Administration and Interior (MAI), the Ministry of Labor, Family and Social Security
(MLFSS), the Ministry of Transport, Construction and Tourism, the Ministry of
Environment and Water management, the Ministry of Culture, the National Agency
for Small and Medium Enterprises and Co-operatives (NASMEC) and the National
Institute for Research & Development in Tourism (NIRDT).
c) The economic and social partners;
d) Other bodies representing civil society, environmental partners, non-
governmental organisations, and bodies responsible for promoting equality
between men and women;
Donor organizations (EC Delegation, the World Bank, USAID, UNDP, EBRD) have
also been actively involved in the public consultations for the identification of the
areas of actions and the definition of the ROP interventions.
The public consultations organized by the MEI at national and regional level,
ensured broad and effective involvement of all the above bodies with respect of the
principles of transparency and access to information for all organizations
concerned by the ROP interventions, and the active dissemination of the
information amongst the partners.
The partnership principle will also be promoted during the implementation of the
ROP, i.e. in financing, implementation, monitoring and evaluation of the assistance.
Throughout the implementation and evaluation of the ROP, the involvement of
relevant organizations at regional level in the project selection, will be ensured in
order to select those projects that are really beneficial for the regions and reply to
the specific needs of the priority sectors at regional level.
The ROP framework is structured in five priorities and fourteen operations,
including the Technical Assistance priority, which includes three operations.




Draft Regional Operational Programme of Romania – October 2005                     7
Structure of the Romanian ROP


    Priority 1: Improvement of regional and local public infrastructure

       1.1 Improvement and development of transport networks and related public utilities

       1.2 Support and development of health care and social services infrastructure

       1.3 Development and rehabilitation of education infrastructure

    Priority 2: Strengthening regional and local business environment

       2.1 Development of business support infrastructure

       2.2 Support and modernization of regional and local businesses

       2.3 Development of business support services in the regions

    Priority 3: Development of regional and local tourism

       3.1 Rehabilitation of tourist areas, renovation of historical and cultural patrimony,
       protection and valorization of the natural heritage

       3.2 Development of business environment in tourism

    Priority 4: Sustainable urban development

       4.1 Support of community development integrated projects

       4.2 Support of environment friendly transport infrastructure, related public utilities
       and public services

       4.3 Rehabilitation of in situ4 brownfield areas for development of new activities

    Priority 5: Technical Assistance

       5.1 Support to the implementation and overall management of the ROP

       5.2 Support to the Communication Strategy of the ROP

       5.3 Studies and Statistics

All proposed ROP priorities are in line with the renewed Lisbon strategy and the
EC cohesion policy, including actions that promote growth, competitiveness and
employment.    It is developed in accordance with the principles of the
“Convergence” objective of the EC Structural Funds. It respects the Community


4
  In situ brownfield areas contain abandoned industrial areas as well as underused/unused plots of land within
cities

Draft Regional Operational Programme of Romania – October 2005                                            8
strategic guidelines and the national strategic reference framework for regional
development, incorporated in the Romanian NDP 2007-2013.
The sixth development priority of the National Development Plan (NDP 2007-2013) of
Romania, refers to “Supporting the balanced development of all Romania’s
regions” and includes the analysis of the priority objectives for the “promotion of a
balanced territorial development by creating the conditions for the diminishing of the inter
and intra-regional disparities, stimulating the areas and towns lagging behind, as well as
the ones with economic growth potential”.
   The specific objectives of the strategy are:
   1. Increase the competitiveness of regions as business locations
   2. Supporting the regional/local economies affected by industrial restructuring or
      traditionally underdeveloped
   3. Capitalize on the touristic and cultural potential of the regions and increase these
      fields contribution to the regions’ development
   4. Rehabilitation of the small and medium size urban centers, with economic growth
      potential in order to become regional development poles
   5. Strengthening the capacity of local authorities in the field of programming and
      development management
   6. Promoting territorial co-operation at interregional, cross border and transnational
      level

Chapters 2 and 3 of the present document provide with a more in depth
presentation of the regional development strategic objectives, which form the basis
of the development principles of the ROP and an analysis of the ROP priorities and
operations.
The financing of the ROP will be provided from the European Regional
Development Fund (ERDF), the EU contribution representing 80% of the public
expenditure. The Romanian state will co-finance 20% of the total expenditure of
the actions by public sources from the state budget and from the budgets of the
counties and municipalities. The ROP financial tables are presented in chapter 4
of the present document.
The draft ROP incorporates the comments and recommendations from the inter-
ministerial and inter-regional consultations and the round tables organised by the
MEI.
According to Governmental Decision No. 402/23.03.2004, the Managing Authority
for the Regional Operational Programme is set up within the structures of the
Ministry of European Integration. The Managing Authority is built up from the
General Directorate for Regional Development, together with the eight Regional
Development Agencies (RDAs) that have been set up under the Laws
Draft Regional Operational Programme of Romania – October 2005                            9
No.151/1998 and 315/2004 regarding the regional development in Romania. The
Intermediate Bodies for the implementation of projects under the Regional
Operational Programme are designated within the eight Regional Development
Agencies according to the acquis communautaire on Chapter 21 – Regional policy
and co-ordination of structural instruments, in force on 31 December 2003. The
same document also specifies the involvement of all other institutions (as IBs or as
Implementing Agencies) to which the RDAs will eventually delegate the task of
managing operations or deliver specialist measures under the ROP. These may
be different regional and local bodies and institutions, such as:
      Government structures at regional level;
      County Councils/other regional/local entities (Communal Councils);
      Municipal Councils – urban regeneration packages;
      Local Chambers of Trade and Industry;
Additional bodies will be responsible for creating regional partnerships, particularly
in relation to the preparation of projects, including their co-financing and
preliminary environmental assessment, and for providing information and publicity
about the programme.
Management and implementation arrangements of the ROP are included in
chapter 6 of the ROP document.




Draft Regional Operational Programme of Romania – October 2005                   10
I.   SITUATION ANALYSIS OF THE ROMANIAN REGIONS




Draft Regional Operational Programme of Romania – October 2005   11
II.    REGIONAL DEVELOPMENT STRATEGIC OBJECTIVES




Draft Regional Operational Programme of Romania – October 2005   12
III.   THE PRIORITIES OF THE ROP

The general and specific objectives of the NDP 2007-2013 regional development
strategy regarding the balanced development of all regions, will be achieved by an
integrated approach, based on a combination of public investments in the
regional/local infrastructure, active measures to enhance entrepreneurship, and
support of regional/local resources capitalization in the following priority
development areas, or “priorities”:
1. Improvement of local and regional public infrastructure
2. Strengthening regional and local business environment
3. Development of regional and local tourism
4. Sustainable urban development
5. Technical assistance


1. Improvement of regional and local public infrastructure
The implementation of this priority aims at creating appropriate conditions, if not
equal, mainly, regarding the transport infrastructure, the social infrastructure and
the access to the main services, as well as exploiting the regional/local
development potential by capitalizing the existing material, human and
environmental resources.
This priority is mainly contributing to the implementation of the specific objective
regarding the competitiveness of the regions as business locations, established on
the basis of the need identified in the rationale, i.e. the need to increase the
regions’ attractiveness degree, but can also contribute to achieving the other
specific objectives, transport and social infrastructure, constituting the main
framework for development and for increasing the regions’ attractiveness degree.


2. Strengthening regional and local business environment
This priority can primarily materialize the specific objective regarding the stopping
of the economic decline and fighting against the potential exclusion of some areas
from the economic growth process. This specific objective has been established on

Draft Regional Operational Programme of Romania – October 2005                   13
the basis of the need identified in the rationale of the strategy and aims at
strengthening the development of regional and local economies, by stimulating
businesses, especially those including innovative potential, and enhancing
specialized services addressed to them, including the necessary infrastructure.
In Romania, local and regional economies are often poorly innovative and
territorially concentrated. This situation depends on various factors at national
level, which are beyond the control of local authorities, but which are also
generated by the insufficient correlation with RDI institutions active at regional
level. Following this state of affairs, local stakeholder organizations can propose, in
the framework of their regional and local development competences, specific
initiatives aiming at promoting partnerships in the field of RDI, which should be
adjusted to, and used for the local priorities and needs.


3. Development of regional and local tourism
This priority, will mainly implement the specific objective “capitalization of regions’
cultural and tourist potential and increasing the contribution of these sectors in the
regions’ development”, identified in all the development plans and strategies of all
eight regions. Support will be provided to tourism businesses and tourism
business service providers in improving infrastructures and services (tourism
business environment).
Tourism represents a “tool” for economic growth, because it contributes to the
regional growth and job creation. It also capitalizes cultural and natural heritage,
specific to each of the eight development regions, including isolated areas,
economically and socially disadvantaged areas. Further more, tourism also creates
opportunities for economic diversity at local level, through the capitalization and re-
investment of the tourism income.
The capitalization of regional tourist attractions may contribute to the economic
growth, especially in those areas affected by isolation and economic decline, thus
increasing regional and local attractiveness to investors.


4. Sustainable urban development
This priority answers the specific objective referring to the need to stop the further
deterioration of urban areas and to achieve a more balanced development
between the economically strongest cities and the rest of the urban network.

Draft Regional Operational Programme of Romania – October 2005                    14
Many towns have economic growth potential, and some of them, potential to
become regional leaders. Yet, there are obvious signs of structural
underdevelopment of many centers situated in various parts of the country. In
addition, almost all Romanian towns register a continuous trend of population
decrease. What is even more serious is a tendency of emigration of the educated
population.
Actions will aim at releasing economic potential of those areas and transform
deteriorated urban areas to vivid economic and social centers.


5. Technical Assistance (Strengthening the local authorities’ capacity of
programming and development management)
Romania’s accession to the EU will impose from 2007 a better knowledge of the
directives, regulations and mechanisms of European decision at all levels of public
administration, including first of all the personnel of local administration.
In Romania, the most important administrative functions are under the
responsibility of the central level and of its territorial bodies. There is a tendency to
enhance the local administrations’ responsibilities in planning and programming, by
a large decentralization process, sustained as much as possible by market
mechanisms. So far, this process underwent a series of stages of the process for
creating the required legal framework.
This massive decentralization and reform process who made the responsibilities of
local authorities more numerous, created problems in terms of institutional capacity
at local level, there existing difficulties in accomplishing the tasks related to
planning/programming development and implementation. There were and still are
carried out many training programmes for the personnel in public administration.
They have to be carried on by increasing the personnel’s capacity in the above-
mentioned areas and ensuring very good knowledge of the European decision-
making directives, regulations and mechanisms, at all levels of public
administration, including firstly the personnel of local administration.
                                            ***
The above implementation priorities of the ROP are in line with the Community
cohesion policy and the provisions for distribution of the Structural Funds
assistance, as analyzed in the relevant regulations. They are taking into
consideration the global regional development strategy of the Romanian
government, and they are analyzed in operations based on an analysis of:
Draft Regional Operational Programme of Romania – October 2005                      15
   -   the specific needs of the regions
   -   the administrative capacity of regionally implemented operations at national
       and regional level
   -   the capacity of absorption of the appropriate financial allocations
On the basis of the defined objectives of the ROP and the main strategic directions
and considerations for their achievement, the financial expenditure of the ROP is
distributed according to the following table:


                       ROP Priorities                            Distribution of the
                                                                   ROP financial
                                                                    expenditure
1. Improvement of regional and local public infrastructure              48%
2. Strengthening of regional and local business environment             16%
3. Development of regional and local tourism                            12%
4. Sustainable urban development                                        22%
5. Technical Assistance                                                  2%



The above percentages (weights) have been established on the basis of the
analysis of the needs of the regions in the specified areas of assistance, and they
correspond to the allocation of the ROP financial resources.
In the following chapters is presented an analysis of the contents of the ROP
priorities and the eligible actions included under the various areas of operations.
Chapter III.1 contains the description of the ROP priority “Improvement of regional
and local public infrastructure”. It provides an analytical description of the three
areas of operations, i.e. Improvement and development of transport networks and
related public utilities (1.1), Support of health care, public safety infrastructure and
social services (1.2), and Development and rehabilitation of education
infrastructure (1.3). The analytical presentation of the operations of the first priority
of the ROP is necessary for the better explanation of the objectives and
subsequent areas of operations, because of the particular needs of each of the
three sectors of intervention (transport, health and education). All sectors are of
particular significance for the Romanian regions, bringing sustainable solutions to
the enhancement of the attractiveness of the regions and the improvement of the
quality of life. Priority 1 of the ROP will be allocated approximately 2,136 million

Draft Regional Operational Programme of Romania – October 2005                         16
euro of ERDF and national financing (48% of the ROP total expenditure).
Operations 1.1, 1.2 and 1.3 will respectively receive 1,557.5; 311.5 and 267 million
euro for the whole programming period (2007-2013).
Chapter III.2 contains the description of the ROP priority “Strengthening of regional
and local business environment”, which is directly connected with the growth of the
productive sectors in the Romanian regions, the promotion of entrepreneurship and
increase of enterprise competitiveness. The ROP total financial expenditure
allocated to priority 2 is of approximately 712 million euro (16% of the total ERDF
and national financing of the Programme).
Chapter III.3 presents the analytical description of the ROP priority “Development
of regional and local tourism”, within which measures of rehabilitation of the
Romanian touristic areas are promoted (including the renovation of historical and
cultural patrimony, and the protection/rehabilitation of natural heritage), as well as
measures aimed to support business growth activities in the tourism sector (tourist
income generation activities). The 3rd ROP priority receives a total allocation of
534 million euro approximately, which corresponds to 12% of the total ROP
financial expenditure (including ERDF and national financing).
Chapter III.4 contains the analysis of the ROP priority “Sustainable urban
development”, which is more specifically oriented to actions aimed at supporting
urban regeneration activities in the Romanian regions. Activities that will receive
support from this priority may be integrated actions of urban regeneration, as well
as actions related to the acquisition of environmental friendly transport
infrastructure and the development of related public utilities, or actions related to
the rehabilitation of brownfield areas which exist in the Romanian urban areas, for
the development of new activities. ROP priority 4 will receive a total financial
allocation (including ERDF and national financing) of 979 million euro (i.e. 22% of
the ROP financial expenditure) for the whole period of the current programming
(2007-2013).
Finally, Chapter III.5 presents the analysis of the actions included under the
“Technical Assistance” priority of the ROP, which will receive 89 million euro
approximately for the 2007-2013 programming period, which corresponds to 2 % of
the total financial expenditure of the ROP (total of ERDF and national financing).
The estimated allocation of the funds distributed per ROP priorities is presented in
the following table (EUR million in current prices).



Draft Regional Operational Programme of Romania – October 2005                   17
                                  Total public         Community               National
ROP priorities                    expenditure          contribution          Contribution
                                                         (ERDF)
                                     1=2+3                   2                    3
1. Improvement of regional
and local public                   2,136,000.000           1,708,800.00         427,200.00
infrastructure
2. Strengthening of regional
and local business                    712,000.00             569,600.00         142,400.00
environment
3. Development of regional
                                      534,000.00             427,200.00         106.800.00
and local tourism
4. Sustainable urban
                                      979,000.00             783,200.00         195,800.00
development
5. Technical Assistance                89,000.00                 71.200.00       17,800.00
Total                               4,450,000.00           3,560,000.00         890,000.00



A more specific analysis of the Structure of the ROP as regards the financial
allocations to the various ROP priorities and how these correlate with the ERDF
priorities (including a distribution of the total public expenditure) are included in the
tables of the two following pages.




Draft Regional Operational Programme of Romania – October 2005                        18
                                   STRUCTURE OF THE REGIONAL OPERATIONAL PROGRAMME (ROP)
                                                                                                                                                          amounts in million euro
                                                                                                                                               Community
                                                                                                 Total Public        % on the Total Public                      National Public
                                                                                                                                              Participation
                                                                                                 Expenditure          Expenditure (ROP)                            Sources
                                                                                                                                                 (ERDF)
Priority 1: Improvement      1.1 Improvement and development of transport networks                        1,557.50                   35.00%          1,246.00             311.50
of regional and local        1.2 Support of health care social services infrastructure                     311.50                     7.00%            249.20              62.30
public infrastructure
                             1.3 Development and rehabilitation of education infrastructure                267.00                     6.00%            213.60              53.40
                                                                                         Total         1,708.800                  2,136.000          48.00%            1,708.80
Priority 2: Strengthening 2.1 Development of business support infrastructure                               311.50                     7.00%            249.20              62.30
of regional and local     2.2 Support and modernization of local and regional businesses                   222.50                     5.00%            178.00              44.50
business environment
                          2.3 Development of business support services in the regions                      178.00                     4.00%            142.40              35.60
                                                                                       Total             569.600                    712.000          16.00%              569.60
Priority 3: Development of 3.1 Rehabilitation of tourist areas, renovation of historical and
regional and local tourism cultural patrimony, protection and valorization of the natural
                           heritage                                                                        311.50                     7.00%            249.20              62.30
                           3.2 Development of business environment in tourism
                                                                                                           222.50                     5.00%            178.00              44.50
                                                                                         Total           427.200                    534.000          12.00%              427.20
Priority 4: Sustainable      4.1 Support of community development integrated projects                      311.50                     7.00%            249.20              62.30
urban development            4.2 Support of environment friendly transport infrastructure,
                             related public utilities and public services                                  445.00                    10.00%            356.00              89.00
                             4.3 Rehabilitation of in situ brownfield areas for development of
                             new activities                                                                222.50                     5.00%            178.00              44.50
                                                                                         Total           783.200                    979.000          22.00%              783.20
Priority 5: Technical        5.1 Support to the implementation and overall management of
Assistance                   the ROP                                                                        44.50                     1.00%             35.60               8.90
                             5.2 Support to the Communication Strategy of the ROP                           22.25                     0.50%             17.80               4.45
                             5.3 Studies and Statistics                                                     22.25                     0.50%             17.80               4.45
                                                                                         Total             71.200                    89.000           2.00%               71.20
TOTAL                                                                                                  4,450.000                   100.00%         3,560.000            890.000




Draft Regional Operational Programme of Romania – October 2005                                                  19
III.1 Priority 1: Improvement of regional and local
      public infrastructure
Under priority 1 were indentified three operations:
1.1.    Improvement and development of transport networks
1.2.    Support and development of health care and social services infrastructure
1.3.    Development and rehabilitation of education infrastructure


1.1.    Improvement and development of transport networks
Rationale
Romanian territory being crossed by three pan European corridors, transport
sector would become a relevant driver to regional development.
For this reason, there is an important need to develop the transportation system
in Romania’s regions in order to support the increase on demand5 and to
accelerate the progress of its economy while joining the European Union.
Objectives
       To supplement, and create links with, the TEN-T and international and/or
        national transport network, and thereby complement the development and
        modernization of infrastructure networks planned under the Sectoral
        Operational Programme “Transport Infrastructure”, thus supporting the
        regions’ competitiveness and serving the achievement of the goals and
        overall implementation of the NDP 2007-2013.
       To improve transport links and communication between the main regional
        centers and between these regional centers and the towns and other
        areas, in order to enhance balanced economic development, and to
        facilitate the population’s mobility and access to employment, health care,
        education, culture and recreation.
Operations
1.1.1 Construction and modernization of regional and local road network

The new economic environment in Romania and the increased access to the
Western countries markets leads to a steady growth of transport demand and, as

5
 Imports rose from 11.5 million tons in 2000 to 20.8 million tons in 2004 and exports increased from 10.5
million tons in 2000 to 15.6 million tons in 2004, at the most important port in Romania.

Draft Regional Operational Programme of Romania – October 2005                                        20
a consequence of it, to the need of a better transport infrastructure. The effort
being made for the modernization of the road network is remarkable and a new
strategy has been set up to build new sections of highways, to rebuild some
national roads as to boost its capacity and improve its quality to allow the load
per axle permitted in the European roads, and finally to rehabilitate the rest of the
national road network by a clear identification of the sectorial priorities.
Nevertheless, the regional road network must also be modernized to guarantee
the accessibility of people and goods to the mentioned national roads. Otherwise
the timesaving and reliability of the transport mode will not be achieved by the
Country and regional development will not be possible, while the national growth
won’t be sustainable.
At the same time, it is necessary to create links between county/ communal/
regional transport networks and the national, European and international
networks, and also the modernization of the county and communal roads. All
these investments in transport infrastructure should lead to an increased
accessibility to and within the country.
The adjacent road network must valorise especially the areas with low economic
development, until now “undiscovered” by the investment flows.
Additionally, the future new transport infrastructure would make it possible to
generate new road transport demand in specific itineraries of the regional
network because of its relevant interest for tourism or other economic activities
as to significant industrial centers or poles or other public transport facilities.
The investments in road infrastructure should concentrate in those areas where
natural difficulties, the historical and economic evolutions hampered the
development of an adequate transport infrastructure.
This operation will complement the SOP “Transport Infrastructure” by supporting
transport infrastructure projects that are considered critical by local decision
makers because they solve particular problems related to congestion or safety
associated with the traffic crossing cities or towns.
Eligible activities
Projects expected within this area of intervention include the rehabilitation and
modernization of the roads managed by the Counties and Communes’




Draft Regional Operational Programme of Romania – October 2005                    21
authorities6. The access road from sites of special interest for regions, counties
and communes are also financed under this operation7. Eventually, sections
linking intermodal infrastructure of national interest with the national network
could also be considered if it is not financed in the Sectoral Operational Program,
provided the regional significance is justified8.
Potential final beneficiaries
Local/regional authorities
Indicative selection criteria
As a condition for eligibility, road sections should be defined in an adequate
Spatial Plan as being priorities. In the case of roads linking cities or villages from
different Counties, it is necessary to be an agreement between Counties involve
in the project.
The project criteria will take into account the accessibility of the territory to the
national network and the road performance (annual average daily traffic, peak
traffic flow, etc) and safety (accident and casualty rates) together with road
design characteristics (capacity, sight and break distance) and conservation
diagnosis (unevenness, wear, potholes, cracks).


1.1.2. Rehabilitation and/or modernization of local/regional airports and
        ports
Eligible projects within this area of intervention shall include:
       The rehabilitation and/or upgrading of only airports of regional interest to
        meet operational transportation and cargo needs to help services and
        under-development sectors
Eligible activities
Projects expected within this area of intervention include,
       Upgrade airports and ports of regional interest


6
  An example of it could be the reabilitation and modernization of 49.57 km road DJ 248 A of the Iasi
county, section Iasi-Miroslava-Voinesti-Domnita-Tibana-Tibanesti (up to the judicial limit of Counties
Negresti) will cost up to 4.95 Meuro.
7
  For exemple: the modernization of the 13 km long access road from the Dobrovat Monastery to the
national network and the 18 km long access road to the archaeological site Cucuteni.
8
  The access to the Iasi Airport, linking this national inter modal infrastructure with the national road
 (DN 28) is a good example of the type of projects described.

Draft Regional Operational Programme of Romania – October 2005                                        22
Potential final beneficiaries
Authorities with responsibilities in airports/ports management, public-private
partnerships.
Indicative selection criteria
The quality of feasibility studies, availability of land, total traffic demand and the
efficiency of airports/facilities.


1.2. Support and development of health care and social services
     infrastructure
Rationale
The Romanian population is affected by the insufficient capacity of the health
system to cope with their needs. The health national coordination encounters
decisional shortcuts and delays in the decision-making process due to lack of an
integrated information and management system at regional and local levels.
Moreover, primary health care is still neglected, the Social Security system is
underdeveloped and the infrastructure endowments are old and in very poor
condition. In this context, the level of trust of the population in the overall medical
system is very low, and the out-of-the-pocket payments is a current practice.
All these lead to insecurity as it regards the Romanian population health status,
which can be further translated in a possible incapacity to contribute to the
increase of the overall country’s productivity, participation to the labour market
and finally of its general growth.
The majority of the Romanian operating health Units (around 520) is state
owned. In the case of state hospitals, the buildings belong to the local/county
councils and the equipments belong to the ministry. However, the local hospital
can buy its own equipment – but the money allocated from the local budget often
is not enough to provide at least for the basic maintenance costs, not to speak
about further investment.
This represents a significant factor in terms of the need for national and local
investment as to maintain and operate properly the extensive number of health
facilities at yearly base.
The Romanian emergency system operates through the intermediary of the



Draft Regional Operational Programme of Romania – October 2005                      23
   -   emergency departments at each county level, within the county hospitals
       and emergency hospitals;
   -   ambulance services;
   -   SMURD services ('Mobile Emergency Extrication and Medical Response
       Unit'), integrated within county hospitals and fire brigades and co-financed
       from local authorities, which complement ambulance services.
When a health problem occurs to a Romanian, the first step undertaken in the
curing process is to address the nearest emergency unit (and not to the family
doctor in order to send to a specialized medical department in a hospital or
clinic). It is in these departments that most of the cases are dealt with and the
follow-up is also taken care of at this level (in order to refer to the first doctor/s
who took knowledge of the patient’s problem). This is a general social trend and
probably it will take years until it changes. In Bucharest, for example, out of an
average of 1000 ambulance cases/day, 40% are 0 and 1 degree level.
In these conditions, taking into account that the emergency system is
overcharged also with cases, which do not necessarily need emergency
treatment, there is need for the extensive development of the emergency
provision capacity as it regards the buildings infrastructure and endowments with
equipments, as well as the endowments for the ambulance and SMURD
services.
As well, there is need for equipped mobile structures for intervention in cases of
major accidents, which should also include extrication equipment. At present
there are only three regional structures in Romania, under the SMURD services.
In the field of social assistance the infrastructure is underdeveloped and of low
quality, situation that makes services provided by this sector to be insufficient
and of low quality.
In this field, it is necessary to build and/or rehabilitate, modernize and equip
different types of social assistance infrastructure, in accordance with their needs.
The investments for the modernization of the buildings, of the equipments and for
the development of the primary medical assistance centres, of the hospitals and
of the emergency technical and medical services represents a strong need that if
it is achieved will lead to the increase of the capacity and the quality of medical
assistance at regional level, so that will be set up a modern and functional
medical system.


Draft Regional Operational Programme of Romania – October 2005                     24
Objectives
The objectives aim at the improvement of the capacity and quality of medical
care assistance, of the emergency assistance and of the social assistance
infrastructure at local and regional level.
These interventions target the improvement of the quality of medical care and at
the upgrading of the services offered to the public.
More specifically they concern the improvement of the primary medical
assistance system and services, with a special focus on rural areas and the
improvement of the efficiency of the hospital medical system at regional, county
and local level by modernisation of hospital infrastructure and equipment
endowments, according to the type of services to be delivered.
Operations
1.2.1. Rehabilitation of health services infrastructure (buildings and
      equipments)
The physical conditions of most health facilities in Romania are poor and
deteriorating as a result of low levels of maintenance and a lack of capital
investment both at urban and rural level. These are a consequence of
underdeveloped or badly managed infrastructure, of lack of sanitary equipment,
of medical staff instability over time due to low incomes, and of an improper
sanitary and hygienic education.
The emergency of reconstruction and modernisation is individual for each
healthcare facility and is based on several factors, such as the extent of provided
medical services, their provision within the structure of healthcare network and
perspective of their future use.
The healthcare facilities need to cope with the operational issues as a result of
the obsolete available equipment – boiler rooms, washing rooms, kitchens and
other technical equipment which is more than 25 years old in most of the cases.
This equipment requires increased maintenance costs. The most suitable
solution would be the replacement of the entire equipment sets. Also, the
operating expenses are excessive due to poor energy management, which
requires investments into thermal insulation of buildings, etc.
Access to PHC services in rural and remote areas, as well as the need to provide
24-hour emergency coverage in these areas is of particular concern to the MOH.
Financing of primary health care has been transformed significantly since 1998,

Draft Regional Operational Programme of Romania – October 2005                  25
as responsibility for funding health has shifted from the state budget to the health
insurance system. However, high levels of inefficiency in the allocation and use
of services characterize Romania’s system. Like other transition countries, health
care in Romania was overly focused on specialized, tertiary care, at the expense
of primary health services. Dispensaries and other primary health units are
owned by different institutions and, in some cases, property ownership has not
been clear. Some of the dispensaries are owned by the Ministry of Health and
others by county and local councils.
Eligible activities
   -   renovations of hospitals and other public sanitary entities, especially the
       old ones, which have not benefited from renovation/rehabilitation during
       the last years, consisting in repairing, paintings, both in interior and on
       exterior;
   -   creation of additional infrastructure in existing units
   -   consolidation works for hospitals and other sanitary units vulnerable to
       earthquakes;
   -   modernisation of utilities (furniture, clinical utilities, air conditioning);
   -   endowments with adequate equipment according to the needs and the
       regional/national development plans;
   -   investments in environment protection and energy-saving (rehabilitation of
       central heating systems, high-tech medical equipments);
   -   development of specialised medical care units for final specialisation (for
       example in the case of burned, spine problems etc.)
Potential final beneficiaries
Local and county councils as owners of the hospitals, diagnostic centres, primary
health care units and other health care facilities.
Indicative selection criteria
    Maturity of the action – Pre-feasibility studies available                            Formatted: Bullets and Numbering


    Availability of relevant licenses and approvals required
    Capacity of the final beneficiary to manage, monitor and ensure the follow-
      up of the proposed action



Draft Regional Operational Programme of Romania – October 2005                         26
    Capacity of the technical department of the final beneficiary to supervise
      the implementation of the action (for infrastructure projects)
      Importance of the problem proposed to be solved by the action;
      Justification and adequacy of the social acceptance of the action;


1.2.2. Increasing the capacity and the quality of the emergency medical
       system at the level of each of the 8 regions
The current state of the overall emergency system is in poor condition. The
buildings need reconstruction and rehabilitation, refurbishment, thereby
increasing the standard of the healthcare facilities. There is also need for the
replacement of the obsolete equipment.
As it regards the pre-hospital interventions, there is need for the development of
integrated mobile structures for intensive therapy (eg. SMURD, Rom. UMITI) at
hospital and fire brigades level. It would also be very important to set up rapid
response units based at firebrigades units, as well as the development of
regional air medical and technical rescue units.
The investments in this operation aim at the increasing the quality and the
response capacity of the emergency medical assistance system and of the
pre-hospital technical response system;
Eligible activities
   -   Improvement of the quality of services provided by the county emergency
       services;
   -   Rehabilitation of hospitals and endowments with equipments according to
       the level of classification of medical care;
   -   Development of ambulance services and of UMATI type mobile medical
       rescue structures;
   -   Development of the SMURD integrated services, both at county and local
       level, including rural remote areas;
Potential final beneficiaries:
Emergency services within hospitals; emergency hospitals; ambulance and
SMURD structures.



Draft Regional Operational Programme of Romania – October 2005                 27
Indicative selection criteria
      Maturity of the action – Pre-feasibility studies available
      Availability of the necessary human resources and material resources to
       operate the service
      Justification of the need of the service
    Justification of the necessary training provision to the personnel of the          Formatted: Bullets and Numbering

      units (financed under the ROP or the SOP Human Resources)
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action
      Compliance with the report of the TAIEX expertise on the capacity of
       Romania for emergency response (issued in October 2004)


1.2.3. Improvement of social services infrastructure
The persistent and frequent problems resulting from insufficient financial
coverage of social assistance in the area of social services could be generally
defined as follows:
      The absence of financial coverage for the operation of new social facilities
       prevents them from being used;
      The repeated failure to address requirements for financial coverage of
       repair and maintenance works in social facilities, including emergency
       conditions;
      Long-term under-investment for constructing new facilities designed
       specifically to provide care to the citizens in financial or social need. Such
       facilities should replace the current buildings, which do not meet the
       structural and technical requirements, neither do they meet the
       requirements to improve the life quality of citizens.
In order to improve the housing quality, as well as the quality of other services
provided in social services, it is imperative to build new Social Care Facilities that
are designed specifically for such purposes. The funds allocated cover only a
fraction of what is necessary to invest into current major projects under
construction, as well as into the projects of energy-saving and emergency nature
Draft Regional Operational Programme of Romania – October 2005                     28
in social care facilities (gasification of boiler rooms, emergency condition in
washing rooms and kitchens); even though such projects are scheduled for
completion.
The interventions concern the restoration of buildings and facilities of social care
in order to improve the quality of social care and social services for socially
marginalized groups and children. The above improvements are designed to
enhance the quality and effectiveness of services. They will also facilitate
construction or modification of ancillary facilities such as provision of toilets for
handicapped people and the installation of air-conditioning where appropriate.
The upgrading of these facilities and the introduction of new kind of facilities will
allow for a greater number of people with family member dependants and in
some case for the actual beneficiaries to participate in the workforce. The
operations included here are intended to address the elimination of inequalities.
Eligible activities
(Re)-building, reconstruction and installation equipment in premises that are used
for providing social care services.
Potential final beneficiaries:
Shelters and institutional centers for young and disadvantaged people, for
abandoned children and for handicapped, social cantinas etc who intend to
provide for facilities of social services for adults; facilities of social services for
children; facilities for crisis intervention; protected workrooms; facilities for
maltreated mothers with children to facilitate guidance and counselling; nursing
service stations providing day care to facilitate in particular parents participation
to workforce; daily stationeries for elderly, mentally ill and handicapped people;
pensioners facilities; social adaptation facilities; foster care facilities; facilities for
protected boarding; facilities for single parents; crisis centres; re-socialisation
facilities; contact centres for job mediation; children homes; facilities to support
Roma social inclusion.
Indicative selection criteria
      Maturity of the action – Pre-feasibility studies available
      Importance of the problem proposed to be solved by the action
      Justification and adequacy of the social acceptance of the action
      Availability of relevant licenses and approvals required by all components
       and projects related to the action
Draft Regional Operational Programme of Romania – October 2005                          29
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)


1.3.   Development and rehabilitation of education infrastructure
Rationale
According to the Ministry of Education and Research, ensuring a high quality of
educational services, supporting human resource training and long life learning,
increasing the participation in education are only few of the basic principles of the
educational policy in Romania.
The quality of the above-mentioned educational services provided to children and
communities is directly linked with the state and quality of educational
infrastructure on the premises of which the activities are carried out. The current
state of educational infrastructure is very bad as the investment needs exceed
the available funding. Moreover, the recent floods (six waves in 2005) affected a
large part of the schools, increasing thus the need for rehabilitation.
Since 2003, the compulsory education was modified and increased from 8 to 10
years of education. This being the case the demand increased and the
infrastructure capacity is overwhelmed for high schools and TVET institutions.
As well, in the context of the growing importance of the information society the
promotion of informatics in schools is very important. The ICT endowment of
schools is rather low compared to developed countries and has to be
encouraged.
The ROP interventions will focus on pre university education, where the Ministry
of Education and Research has a direct responsibility and will try to balance the
investments between regions in this particular area of education. The universities
were left out as they have autonomous status thus they can attract more funding
resources and they can develop own social services.
Objectives
The global objective is the increase of educational institutions quality and of the
school rating, especially for the pupils coming from disadvantaged social areas,
through the construction, renovation, maintenance and equipping of
kindergartens, primary and gymnasium and secondary school units (including the

Draft Regional Operational Programme of Romania – October 2005                    30
introduction of new information technologies for information and communication –
ICT equipments).
Operations
1.3.1.      Improving basic infrastructure and endowments of schools
            especially in rural areas – all levels
The public education entities are financed under the state budget. The budget
allocated to education has to rise up to 4% of the GDP. According to Law no
10/1991 with a view to public finance, the Ministry of education decides the
budget to be allocated to each institution. The ministry allocates the approved
budgets to subordinated units and to the County School Inspectorates, which, in
turn, allocate the budgets subordinated units – educational institutions. According
to the education law no. 84/1995, the local authorities are in charge with the
repairing and maintaining of primary and gymnasium schools. They finance these
works out of own resources and of social state allocated funds.
It is estimated that there are more than 115 000 classrooms at pre-high-school
level and more than 25 000 at high-school level (including laboratories). The
general state of buildings and equipments, as well as associated facilities is low,
which indicates an evident lack of financing. Many schools need urgent
rehabilitation and endowment with educational equipments, books and
documentation
As shown in the analysis, high levels of funds were attracted from Phare and
World Bank Funds to invest in schools, but they do not cover the need of
rehabilitating the educational infrastructure in Romania. In the view of serious
floods that affected the country in the last year the rehabilitation investments of
the educational infrastructure increased very much.
The majority of the educational infrastructure lacks accessibility standards and
utilities for students with disabilities. The proposed field of intervention suggests
investments on special equipment and modern utilities especially designed for
disabled students in the educational system. The intervention is also needed as it
facilitates social integration of people with disabilities.
On short term, the efforts will concentrate mainly on rural areas, also as a tool to
fight school drop outs, increasing in these areas.
Eligible activities
        reconstruction and extension of school buildings;

Draft Regional Operational Programme of Romania – October 2005                    31
      construction, rehabilitation, maintenance of kindergartens and of schools
       located in disadvantaged communities;
      improvement of the central heating and sanitary facilities;
      modernization of utilities and of auxiliary services within schools;
      class and library equipments;
      transportation means for schools both normal and people with disabilities;
      facilities in School for disabled people;
      Special Teaching Equipments and utilities for disabled people.
Potential final beneficiaries
Educational structures – nurseries, kindergartens, schools, high schools and
annexed buildings.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
      Maturity of the action – Pre-feasibility studies available
      Importance of the problem proposed to be solved by the action
      Justification and adequacy of the social acceptance of the action
      Availability of relevant licenses and approvals required by all components
       and projects related to the action
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)


1.3.2. Supporting the development of “educational campuses”
The compulsory education in Romania has been extended to ten years. This is
especially problematic in rural areas which cannot provide high school education
to the pupils in the respective zones. They usually have to go to study the last
two years out of their locality. This is putting pressure on the infrastructure of the

Draft Regional Operational Programme of Romania – October 2005                     32
high schools which have to provide basic accommodation services to the pupils
enrolled.
With a view to this situation the Ministry of Education and Research aims at
supporting „educational campuses”. An educational campus consists of
integrating, within the same area, all activities of the educational process
(teaching, practice, social activities, recreational activities etc.) by concentrating
educational buildings and support services (“clustering” educational and support
activities). Such a campus includes: the school, hostels for pupils and teachers,
library, canteen, specialized workshops for developing practice based
educational activities, sport bases; premises that can be used not only for initial
education, but also, for continuous education and are adapted to the local needs.
The proposed intervention aims at creating about 457 educational campuses in
all regions and the distribution of such campuses takes into account the leverage
effect of such campuses on local development.
Taking into account the structure of the educational system in which high schools
and TVET schools provide lower and/or upper secondary education (lower
secondary education made in TVET schools or in lyceums/high schools are part
of the compulsory education) and the lower rates of participation to secondary
education, the educational campuses could support the efforts of the Ministry of
Education and Research, of the local communities and the actions undertaken
under SOP HRD for increasing access and participation to education.
The location in pre-urban areas or in de-industrialized urban areas is encouraged
for increasing access and participation to quality education and training in such
communities/areas. High schools and TVET are targeted. Compared to other
levels of education, the TVET schools integrate more in the educational activities
the regional/local dimension and therefore are suitable for becoming the core
part of the educational campuses. This also corresponds to the educational
policy trends of transforming TVET schools, especially located in rural and in
disadvantaged communities into centres for LLL.
The on-going preparatory work for the rehabilitation of Vocational Education
Training (VET) schools (Phare 2001 & 2002) includes the elaboration of a
number of feasibility studies for the type and extent of the interventions needed
by the VET structure. Out of the total number of secondary VET schools, there
are 111 prioritized to receive assistance to improve building infrastructure
(workshops, laboratories, etc). Tender dossiers are under preparation for a total
amount of about 8 million euro. Further building infrastructure rehabilitation and

Draft Regional Operational Programme of Romania – October 2005                     33
workshops’ equipment may be foreseen for support by ROP operations at a later
stage.
These campuses complements the actions envisaged for HRD in the SOP HRD
by creating infrastructure for the education and training activities. Some of the
components of the campus (e.g. the school and the apprenticeship facilities) may
be used not only for initial education and training, but also for life long learning
activities/adult education.
Eligible activities
      reconstruction and extension of buildings located in an educational
       campus (school, practice base, hostels, canteen, sport base etc.);
      endowments;
      modernisation of utilities and of auxiliary services within schools;
      class and library equipments.
Potential final beneficiaries
TVET schools and high schools.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
      Maturity of the action – Pre-feasibility studies available where needed
      Importance of the problem proposed to be solved by the action
      Availability of relevant licenses and approvals required by all components
       and projects related to the action
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)


1.3.3. Improving the ICT potential of schools



Draft Regional Operational Programme of Romania – October 2005                   34
In 2001, the Romanian Government stepped towards a systemic approach of ICT
infrastructure improvement. The Government decided the introduction of 500 000
PCs in schools and high-schools (the equivalent of the increase in the number of
computers per 100 pupils in primary and secondary education by approx. 6,
accompanied by the provision of Internet connection and educational software.
As a characteristic feature of Romanian program of increasing the ICT in the
educational system, the ICT rates per pupil for different levels of education show
a more pronounced dispersion than for the average for the candidate countries in
favour of tertiary education. This unbalance is expected to decline, as more
resources will be oriented further towards undergraduate education. In 2003, the
secondary education endowments reached 10.4 PCs per 100 pupils. With this
progress, Romania is now among the countries in central and Eastern Europe
with the highest level of endowment in the secondary education, with only
Hungary and Cyprus reporting comparable levels (EC (2004)) (the region
average is 6.5).
However, Romania is still lagging behind in the endowment of the primary
schools, at less than half of the candidate countries average. The ROP
operations of this area of interventions will invest on improving the ICT potential
at all educational levels and especially the primary level.
Eligible activities
      endowments with ICT equipments – PCs
      ICT connection infrastructure.
Potential final beneficiaries
Schools – all level
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
      Importance of the problem proposed to be solved by the action
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action



Draft Regional Operational Programme of Romania – October 2005                  35
III.2 Priority 2: Strengthening of                                        regional            and
      local business environment
Rationale
The NDP specific objectives for regional development address two fundamental
issues, namely competitiveness of regions as business locations, and supporting
the regional/local economies affected by industrial restructuring or traditionally
underdeveloped.
In all Romanian regions there are different types of business support structures9
providing services to companies, and especially to SMEs. The number and
quality of these structures defer substantially among the regions, which in most
cases reflects the development level of those regions (i.e. most of the business
support structures are concentrated, besides Bucharest, in Center and West
regions). This situation has strong implications in the performance indicators of
the regional economies (as reflected in the regional GDP) and contributes in
maintaining the regional disparities in the country.
Special consideration should be made of the fact that there is a lack of enough
structures to ensure the connection between the companies and the research
institutions and facilitate the use of innovative technologies in the market place.
Such entities include technology relay centers, and business and research
networks.
This need had also been identified by NDP 2000-2006 and a number of
programmes have been co-financed by the Phare Economic and Social
Cohesion Programme, as well as by other international financing institutions over
the past years. These programs aimed at supporting the creation of different
types of BSS, such as, Industrial Parks, Business Incubators.
The regional distribution of businesses10 shows in a massive concentration in
Bucharest (21.4%), followed by North-East region (13.7%), South-East and
Center (12%).
Moreover, in Romania, small businesses are predominant: 86,56% of the total
number of enterprises was in 2003 companies of less than 10 employees. In
addition, the distribution of micro-enterprises by region varies significantly among
regions (…….).

9Industrial Parks, Science & Technology Parks, Business Incubators and the various types of Technology
Transfer Entities
10
     Companies with 1-249 employees.

Draft Regional Operational Programme of Romania – October 2005                                     36
Micro-enterprises high mortality rate (…… in ….) is also a predominant
phenomenon, mainly due to the under-capitalization, difficulties in accessing
financing and low competitivity potential. This trend is expected to continue in the
coming years if no action is undertaken.
The differences among regions as regards the enterprises’ investments also
reveal huge disparities between the capital (1600 euro per capita gross
investments) and the rest of the regions, while the differences among regions are
not significant, ranking between 315,1 euro in North East and 672,5 in South-
East11.
At the same time, the average gross investments in the total number of regions’
active enterprises (which employ up to 49 workers) is relatively high in Bucharest
(18.983 euro), while in the regions it represents the half or even less12. This low
regions’ participation in investments make obvious the need to put emphasis in
supporting businesses in the regions, in order to achieve higher levels of
investments, and thus become more sustainable.
Furthermore, the existence of adequate number of business support structures,
even with adequate regional distribution, alone, doesn’t lead to sustainable
development of the business environment. In principle, more conditions should
be created, in order to achieve this aim, including efficient use of the resources
invested, which implies the need for better services to support businesses.
Also, it is important that services provided to businesses, be improved in terms of
quantity and quality (diversification) and incorporate the element of knowledge-
based economy (and society).
The evaluation13 of the way the existing business support structures function, and
the identification of the needs of the businesses as end-users14, suggested the
actions which could receive support by the ROP:
        Support the creation of new Business Support Structures (business
         support providers) in regions
        Enhance infrastructure of the business support structures; rehabilitate
         industrial areas/zones

11
   Data 2002.
12
   Center (11.1910), West (10.768), North-West (10.196), North-East (8.445), South (8.277), South-East
(8.107) and South-West (6.890)
13
   According to the “Research Study of the business environment (business support structures)”, 2005
14
   End-users, refers to the residents of industrial and science & technology parks, to businesses established
in business incubators and generally end-users of business support services.

Draft Regional Operational Programme of Romania – October 2005                                            37
      Support the increase of the quality and types of services provided by the
       BSS
      Creation of business networks (IRC, EIC, BIC)
      Support relocation of companies in, connection with actions under the
       urban development priority
      Support initiatives for the creation and/or establishment of exhibitions,
       promotion centers, etc, of local and regional interest
      Increase the level of interaction between business support structures and
       companies
      Promote the modernization and/or expansion of companies (firms can
       modernize the production methods they use, the service provision, and
       apply innovation)
      Provide incentives to companies, especially micro-enterprises, to use
       services provided by BSS
      Support integrated activities with other priorities of the ROP
      Human resource development, including training, through the ROP or
       SOP for Human Resources
      Increase the use of ICT
This priority is in line with priorities two and three of the Community strategic
guidelines and with the first and second objectives of the NDP 2007-2013 priority
“Supporting the balanced development of all regions”.
Objectives
The aim of priority 2 of the Romanian ROP is to set the grounds upon which
regional and local business environment will be substantially strengthened and
become more functional.
Operations
The ROP operations, which implement this priority, are:
      Development of business support infrastructure
      Support and modernization of regional and local businesses
      Development of business support services in the regions



Draft Regional Operational Programme of Romania – October 2005                38
       The ROP operations of Priority 2 are in full compliance with the new architecture
       proposed by the Community strategic guidelines for regional development for the
       period 2007-2013, as shown in following table.
                                                  The new architecture for growth strategies in the regions
                                                                                          15
                                                                 for the period 2007-2013
ROP Areas of Intervention relating
  to the Business Environment                                Facilitate innovation                           Improve
                                   Increase and improve                            Promote the information
                                                                and promote                                 access to
                                     investment in RTD                                 society for all
                                                              entrepreneurship                                finance
2.1 Development of business support
                                             D                        D                      I                    I
infrastructure
2.2 Support and modernization of
                                              I                       D                      I                    D
regional and local businesses
2.3 Development of business and
                                              I                       I                     D                     I
RDI support services in the regions
       (D): Direct alignment
       (I): Indirect alignment



       2.1 Development of business support infrastructure16
       The operation is of regional interest and it aims at strengthening the regional
       capacity in providing services to businesses, especially to micro-enterprises, and
       strengthening RDI support infrastructure.
       The main needs regarding business support infrastructure in the regions enter
       into the following categories:
               building infrastructure (renovation and expansion);
               internal road networks rehabilitation;
               utility networks (creation and/or renovation);
               information technology infrastructure;
               access to broadband networks;
               equipment acquisition and modernization (i.e. laboratories);
               promotion of the use of ICT technology (equipment, networks, software,
                etc).




       15
         Community strategic guidelines: Priority 2, Knowledge and innovation for growth.
       16
         In the context of Romania’s Regional Operational Programming process, business support infrastructure
       comprises of organizations/institutions whose primary activity focuses on providing support services to
       enterprises. As to the RDI entities, their end-user groups are enterprises, other RDI institutions, the
       government, and academic institutions.

       Draft Regional Operational Programme of Romania – October 2005                                        39
As a consequence, ROP actions concentrate in strengthening regional capacities
in business and RDI support infrastructure, as follows:
         Creation of business and RDI support infrastructure in the Romanian
          regions
         Improvement of the infrastructure of the entities currently operating as
          service providers to businesses and regional Research Institutes.
         Actions in synergy with ROP’s urban regeneration operations, as well as
          with other sectoral OPs.
The ROP will finance projects17, relating to the following business and RDI
support structures in the Romanian regions:
     (1) Industrial Parks
     (2) Business incubators of regional/local interest
     (3) Science and Technology Parks of regional/local interest
     (4) Technology and Information entities (technology transfer and information
         entities)
     (5) Local and regional business networks (EIC, IRC, BIC)18
     (6) Regional Research Institutions
Eligible activities
The ROP priority includes the creation of new Industrial Parks, Business
Incubators, Science and Technology Parks19, and Technology and Information
infrastructure. It will also support the creation of local and regional business
clusters, and business and research networks.
Furthermore, this operation will support the improvement of the existing
infrastructure across the different types of business support structures. Activities
will directly reply to the identified needs, such as building infrastructure
(renovation and expansion); internal road networks rehabilitation; utility networks
(creation and/or renovation); information technology infrastructure; access to



17
   In RDI, the Sectoral Operational Programme for Competitiveness can finance the National Research
institutes.
18
   EIC: Euro Info Centers, ITC: Innovation Relay Centres, BIC: Business Innovation Centres
19
   In co-operation with SOP for Competitiveness, Science & Park projects can be supported by ROP if the
total budget does not exceed a certain (pre-decided) budget level

Draft Regional Operational Programme of Romania – October 2005                                      40
broadband networks; equipment acquisition and modernization (i.e. laboratories);
promotion of the use of ICT technology (equipment, networks, software, etc).
Finally, this operation, will support the creation of regional networks in business,
production and RDI, the creation of regional technology relay centers, and
business and research networks, as a means of supporting businesses and
further strengthening local and regional economies.
Potential final beneficiaries
Final beneficiaries under this operation are existing Industrial Parks, existing
Business Incubators, existing Science and Technology Parks, research and
development institutions, Technology and Information Centers, academic
institutions, existing business support structures that wish to diversify activities
(integrated approach in providing services to businesses), and partnerships of all
previous entities (PPP).
Partnerships can be built between private initiatives and local research
institutions, business support structures, and local authorities.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
      Maturity of the action – Business Plan in place
      Availability of relevant licenses and approvals required (i.e. use of land)
      Compliance with environmental protection regulations
      Availability of the necessary human resources and material resources to
       implement the project
      Strong justification of the need of the project
      Importance of the problem to be solved
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action



Draft Regional Operational Programme of Romania – October 2005                       41
            Coherence with other priorities of the ROP, or other sectoral operational
             programs (i.e. SOP Competitiveness and Human Resource)
            Degree of achieving in the provision of integrated services (combined
             services provided by different types of BSS) to businesses.


2.2 Support and modernization of regional and local businesses
Three basic elements are indispensable for achieving the modernization of local
and regional businesses:
            the first is the existence of friendly business environment ensured by the
             state;
            the second is to establish a business support system easily accessible to
             entrepreneurs;
            the third to support businesses, including the businesses involved in RDI,
             by grant schemes.
While the first is a horizontal issue20, the other two include elements, which can
be also addressed by the ROP.
This operation aims at promoting, by financial support, business investments in
modern methods of doing business.
Indicative actions under this operation, which will require co-financing from the
businesses themselves, include investments for companies’ modernization such
as:
             E-commerce and e-business21.
             Systems for storage and distribution of goods22
             Microelectronics and nano-technologies23.
             ERP24 systems
             Electronic fleet tracking systems25.


20
   Must be addressed by SOP Competitiveness
21
   These are application systems (systems aimed at providing businesses with the internet operating
environment (electronic ordering systems, warehousing systems, etc))
22
   The adaptation of such applied systems, (mainly refers to by logistic firms and distributor companies)
23
    Refers to the support of businesses wishing to modernize their production function, by adapting
technological and innovative products
24
   Enterprise-Resource-Planning systems

Draft Regional Operational Programme of Romania – October 2005                                        42
             Natural resource management26
             Waste management applications27
             Local and regional business clusters
             Production equipment modernization
             Use of applied technologies.
Eligible activities
The types of investments that will be supported are in IT systems, modern
production methods and processes, reorganization, use of applied innovation
and technology, taking into consideration regional comparative advantages, and
the disparities in the level of gross investments across the regions.
Potential final beneficiaries
The types of companies that will be supported are those in the production and
services sector.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
            Business Plan in place
            Availability of relevant licenses and approvals required (if needed)
            Compliance with environmental protection regulations (if applicable for the
             investment type)
            Availability of the necessary human resources and material resources to
             implement the project
            Justification of the need of the project, and sustainability (i.e. increase
             productivity, investments in RDI)



25
   Providing that the existing technology and infrastructure will be in place in Romania, those applied
systems provide an operating environment for monitoring automobile and track fleets (for security, and
operational reasons by car rental and transportation companies).
26
   Refers to the adaptation from businesses, recyclable energy sources to generate power (photovoltaic and
wind systems, etc)
27
   Refers to the exploitation of wastes (recycling, sludge processing, etc)

Draft Regional Operational Programme of Romania – October 2005                                         43
           Importance of the problem        proposed    (i.e.   regional   development
            implications, job creation)
           Capacity of the final beneficiary to manage, monitor and ensure the follow-
            up of the proposed action
           Capacity of the technical department of the final beneficiary to supervise
            the implementation of the action
           Coherence with other priorities of the ROP, or other sectoral operational
            programs (i.e. SOP Competitiveness and Human Resource)


2.3 Development of business support services in the regions
The aim of this area of operations is two-fold:
            To assist business support structures to improve the quality of the
             services they provide and to diversify them
            To promote the use of professional services by businesses, especially by
             SMEs and micro-enterprises
The ROP interventions under this operation will concentrate on:
       Supporting activities, which provide services for business development. This
        includes the creation of business, and RDI resource reference databases,
        systems that make available economic data/information and other statistics
        to businesses, and combined business-IT services.
       Diversifying services provided by BSS that may include increasing
        capacities in providing services in various business functions (conventional
        or electronic based), such as, marketing, project management, finance,
        advertising, web site constructing, e-business, and other fields.
       Supporting companies to use the services provided by technology
        incubators, science and technology parks, business consultancy centers, or
        generally, assist businesses’, especially SMEs’ request professional
        services from the existing or new business support structures in Romania.
       Supporting relocation of businesses, especially SMEs and micro-
        enterprises, in business support structures (i.e. Industrial Parks, Science &
        Technology Parks, Business Incubators).




Draft Regional Operational Programme of Romania – October 2005                       44
The above actions will be used as a real tool in closing the gap of services
needed and services provided, and also increase local and regional business
capacities.
Eligible activities
This operation will support the creation of business-related RDI resource
reference databases, systems that make available economic data/information
and other statistics to businesses, combined business-IT services, and combined
business and innovation services. Also, diversification of support services
provided to businesses, may include increasing capacities (conventional or
electronic based) in offering services in various types of business functions, such
as, marketing, international business, project management, finance, advertising,
e-business, etc. So, projects that support the previous business functions will be
financed under this operation.
Moreover, this operation will support relocation of businesses in business support
structures (Industrial Parks, Science & Technology Parks, Business Incubators).
Potential final beneficiaries
Under this operation, final beneficiaries can be existing and new business
support structures, research and development institutions, academic institutions,
and partnerships of all previous entities.
Also, potential final beneficiaries are businesses that require professional
assistance, business service providers aiming at enhancing and expanding the
services provided, businesses in the productive sector, RDI and Technology
Transfer and Innovation infrastructure.
Partnerships can be built between private businesses in the service production
and craft sectors, local research institutions, business support structures, and
local authorities.
No particular eligibility criteria are placed on businesses willing to relocate in
established Industrial Parks, Science & Technology Parks, or Business
Incubators.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:

Draft Regional Operational Programme of Romania – October 2005                  45
        Maturity of the action
        Availability of relevant licenses and approvals required
        Availability of the necessary human resources and material resources to
         implement the project
        Strong justification of the need of the project (i.e. increase productivity,
         investments in RDI)
        Importance of the problem               proposed      (i.e.      regional   development
         implications, job creation)
        Capacity of the final beneficiary to manage, monitor and ensure the follow-
         up of the proposed action
        Capacity of the final beneficiary to supervise the implementation of the
         action
        Coherence with other priorities of the ROP, or other sectoral operational
         programs (i.e. SOP Competitiveness and Human Resource)




III.3 Priority 3: Development of regional and local
      tourism
Rationale
The tourism represents a real tool of the economic growth, whereas it creates
employment opportunities, through valorization of specific natural and cultural
assets of every development region, including marginal areas, economically and
socially disadvantaged areas. Moreover, tourism creates economic diversification
opportunities at local level, as a result of incomes capitalization, obtained from
tourism activities.
At present the contribution of the Romanian tourism to the national economy is
still insignificant (1.41%28 of GDP), compared to other neighboring countries’
achievements, including Central and Eastern European countries, like Bulgaria
4.01%29 or Hungary – 5.94%30.


28
   http://www.wttc.org/2005tsa/Data%20Files%20for%20Web/v5.Romania.xls
29
   http://www.wttc.org/2005tsa/Data%20Files%20for%20Web/v5.Bulgaria.xls
30
   http://www.wttc.org/2005tsa/Data%20Files%20for%20Web/v5.Hungary.xls

Draft Regional Operational Programme of Romania – October 2005                                46
Since 1990 the Romanian tourism is undergoing significant change. While in
1991 the accommodation capacity was of 353,236 bed-places, in 2004 it
decreased to 275,941. Despite the decrease of the number of bed places,
accommodation capacity quality has improved, as underlined by the recent study
realized by the Ministry of European Integration in the framework of the Phare
programme31.
Romanian statistics show the increase of interest for Romanian tourist
attractions. This is confirmed by the increase of the number of foreign tourists
arrivals in the structures of tourist reception with functions of tourist
accommodation. Thus, if in 2000 it was registered a total number of 4.9 million
tourists (of which foreigners 867 thou.), in 2004 the number was increased to 5.6
million (of which foreigners 1.4 million). In addition, Romania presents a
significant development potential both in domestic and incoming tourism32, with
increased interest of tourists, especially in „new holiday experiences”.
The capitalization of tourist attractions existing in different areas of the country,
mainly by encouraging the appearance and development of local enterprises,
can contribute to the economic growth of certain deprived urban areas or
peripheral rural areas and convert areas with low economic competitiveness in
attractive areas for investors.
Tourist activities generate demand for a wide range of goods and services,
purchased further both by tourists and tourism companies, including goods and
services made by other economic sectors (buildings, food & beverage, handicraft
industry).
At the same time, tourism has high potential in generating cooperation between
local enterprises, between these and enterprises, which activate in other
economic sectors, as well as cluster creation. Tourism has an important impact
on reducing the disparities regarding unemployment rate (on gender), by using
female work force mainly.
The development of tourism in the Romanian regions takes into account the
principle of sustainable development, in the sense of preserving natural and
cultural assets, but also to reduce human pressure on environment. The
capitalization of tourist attractions is in many cases limited by the quality of
environment infrastructure, that represents an obstacle in tourism development.

31
   The Study was elaborated within the Phare programme RO 2002 / 000-586.05.01.04.02.02, through the
project “Development of Schemes for Regional Development Programmes
32
   As analysed in chapter 1 of the present document

Draft Regional Operational Programme of Romania – October 2005                                   47
The increasing number of tourists, estimated in the context of tourism
development will put a high pressure on the environment, affecting the
ecosystem’ balance. The pressure on the environment has to be diminished in
those regions with special natural assets, in order to ensure their capitalization in
a sustainable way.
It is likely that the implementation both of national tourism strategy and of other
sectoral national strategies in Romania will lead to the improvement of the overall
conditions for tourism and bring them to high qualitative standards, similar to
those existing in the EU. It is expected that these changes will have a direct
impact on the growth of tourist demand for Romania, like a European tourist
destination.
The Government Program 2005-2008 and the National Development Plan 2007-
1013 have clearly identified the importance of tourism for Romania as a target
sector where interventions financed by the Structural Funds are justified.
Priority 3 of the ROP mainly replies to the specific objectives of the national
strategy for regional development, included in the NDP 2007-2013. It is also in
line with the requirements of the Community strategic guidelines for cohesion.
Objectives
The main objectives expected to be achieved by the ROP implementation are the
following:
   -   Capitalizing on the existing tourist resources and on those that have not
       yet been introduced in the tourist circuit (monuments, historic, natural and
       cultural resources, etc.)
   -   Creating additional income sources for the local population
   -   Creating new jobs and work places arising directly/indirectly from tourism
       activity
   -   Increasing the overall direct and indirect financial benefits from tourism
       activity
   -   Development of main specific tourism market segments (cultural heritage,
       natural resources, niche tourism products) at regional level
Operations




Draft Regional Operational Programme of Romania – October 2005                    48
3.1. Rehabilitation of tourist areas33, renovation of historical and
     cultural patrimony, protection and valorization of the natural
     heritage
This operation is targeted to support the valorization of two important groups of
tourism resources in Romania: the cultural/ historic and the natural resources.
Investments in tourism and culture will allow regions to use advantages offered
by the tourist and cultural assets in order to allow to improve competitive
advantages in sectors with high added value and high qualitative and cognitive
content, both on traditional and emerging markets. The cultural tourism potential
represents one of the highest values for tourism activities. A research study has
indicated that cultural tourists spend 38% more per day, and stay 34% longer
than traditional tourists34.
In the short term, the most important opportunities for tourism development are
ensured by niche tourism (equestrian tourism, speleological tourism, adventure
tourism, historical-memorial tourism, pilgrimage tourism, business tourism,
wellness tourism), based on cultural and natural resources, such as spa resorts,
areas of particular beauty including woodsy areas, natural protected areas, areas
which offer the possibility to practice winter sports, urban historical centers etc.
Heritage and historic tourism is globally one of the most rapidly expanding
tourism segments in terms of numbers of visitors. In addition, it is of paramount
importance to preserve what remains of the cultural heritage of the various
regions of the country that was severely damaged in the last decades. This
includes historical buildings, monuments, museums, theatres, historical works of
art, but also the preservation of popular art and local tradition. This cultural
preservation initiatives proposed by local authorities will have to be accompanied
by a consistent territorial planning for preserving (and where possible, restoring)
historical neighborhoods in towns, maintaining traditional architectonical styles
and conserving medieval historical cities.
On the other hand, the tourism practiced in nature and in a sustainable way,
generates various activities and allows the increasing of economic and
environmental sustainability of tourist activities, mainly in the national and natural


33
   Tourist area is defined an area which concentrates various tourism related elements, such as historic
sites, and/or sites with natural interest, and/or sports, and generally combine one or more tourism potential
products.
34
   US tourist figures 2001

Draft Regional Operational Programme of Romania – October 2005                                            49
parks. Taking into account that 30% of Romania’s surface is occupied by
mountains, we can consider that the mountain tourism represents an important
opportunity for practice different tourist activities, ones of them with niche
character.
Sustainable tourist use of the protected areas could be realized by practicing a
controlled tourism in order to have a balanced distribution of tourists in all periods
of the year (thus reducing the seasonality effect). Moreover, this objective will be
achieved by implementing an efficient booking-system, which will allow knowing
the real number of tourists that wish to visit a protected area and to have an
adequate and continuous monitoring of the pressure on the environment.
Moreover, the competitiveness of tourist attractions, based on natural and human
assets, underused, can be substantially increased. Priority will be given to
initiatives with high level of diversification, which allow scale economies, as well
as the initiatives that are not affected excessively by seasonality.
Eligible (indicative) activities
      Protecting and preserving the local cultural heritage, related to tourism
      Renovating / refurbishing buildings with traditional elements of
       architecture, simultaneously with change of use for contemporary uses
       (i.e. cultural center or museum).
      Developing the important tourist areas, historic city centers with a
       significant tourist potential
      Developing niche tourism market through activities related to eco-tourism,
       spa tourism, cultural tourism and, related to this, improving / creating the
       specific tourist infrastructure
      Capitalizing of the tourist development potential existing at regional/local
       level, including cultural and environment values
      Transforming the locations with tourist potential into tourist products
      Developing a solid market, able to promote these products
      Building access roads, marked tourist paths, in certain natural areas of
       special beauty
      Protection, conservation and promotion of natural protected areas, in
       order to use them as tourist attractions



Draft Regional Operational Programme of Romania – October 2005                     50
         Capitalisation of natural resources (construction materials, mineral waters,
          wood)
         Creation of natural museums, educational centers, tourist information
          centers, etc
Potential final beneficiaries
There are various potential final beneficiaries for each intervention: the County
and Local Councils, the National Parks Administrations, NGOs, as well as private
businesses in partnership with public institutions.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
         Maturity of the action – Pre-feasibility studies available
         Importance of the problem proposed to be solved by the action
         Justification and adequacy of the social acceptance of the action
         Availability of relevant licenses and approvals required by all components
          and projects related to the action
         Capacity of the final beneficiary to manage, monitor and ensure the follow-
          up of the proposed action
         Capacity of the technical department of the final beneficiary to supervise
          the implementation of the action (for infrastructure projects)


3.2       Development of business environment in tourism
This area of operation will support actions aiming at increasing incomes obtained
from tourist activity. This operation consists in a three-fold of categories of
actions, namely, (1) Tourism-business environment, (2) Tourism specific related
infrastructure, and (3) Tourism products:
The Tourism-business environment contains actions, which are typical business
actions, needed for tourism enterprises to operate better as business entities.
Tourism related infrastructure relates to the infrastructure specifically used by the
tourism industry businesses (i.e. accommodation infrastructure).

Draft Regional Operational Programme of Romania – October 2005                     51
The tourism sector itself, as a product or a set of products.
Tourism-business environment
      Supporting entrepreneurship in the tourism field (providing services,
       entrepreneurship and information technology)
      Supporting innovations in tourism companies
      Creating communication networks
      Improving business activities, based on common services (shared
       services)
Tourism related infrastructure
      Improving/enhancing the quality of the available facilities and services
      Modernizing of portable equipment of internal spaces in accommodation
       facilities
      Restoration of surrounding space of tourism facilities
      Investments in ICT equipment
      Investments in recyclable energy sources, and water management
      Investments in environmental protection and health for personnel and
       tourists
Tourism products
      Development and diversification of domestic tourist offer (products and
       services) which may include upgrading of the existing products,
       modernization, improving quality, quality certification, etc.
      Promotional activities for tourist products and services provided for a
       certain destination, and tourist attractions for a specific tourism activity
       (“niche”) or for a group of activities, including organization/participation in
       international fairs, seminars, conferences, exhibitions as well as
       partnership activities for promoting all of the above.
      Creating specialized tourist activity types (“theme” or ”niche” tourism)
      Support the creation of promotion networks for local/cluster tourist areas
      Support the development of new tourist products, especially those aiming
       at market niches, integrated development with huge impact on the tourist
       destination.

Draft Regional Operational Programme of Romania – October 2005                      52
Within these intervention fields, it is such interventions that aim at enhancing the
quality of the eligible tourist products, in order to support companies and
partnerships creating product and service “packages” in an innovative approach,
with a view to developing more competitive products.
The aim of this intervention will bring about the creation of new products, new
work places requesting specific skills (for example, guides for visiting caves,
qualified spa staff) and the revival of areas with low economic activities.
ROP priority 3 will also support such interventions/actions aiming at preparing
promotional actions and materials for the specific niches, which applies only to a
specific region or area. Moreover, these interventions will be approved only if
they are complementary to the national promotion strategy concerning market
niche segments selected in the regions.
Also, it will support the creation of such types of services provided by tourism
business support structures (technology, development initiatives, financial and
legal support), in order to satisfy the needs of regional and local SMEs.
Familial associations and micro enterprises could product and sale goods
(handicrafts, souvenirs) and services (guide system, folk spectacles), either as
main activity or additional activity, using local raw materials and labor force, thus
improving work-in opportunities at local level.
In correlation with the objective of infrastructure development, it is important to
develop services that promote tourist attractions and accommodations.
Specialized activities may also be eligible for assistance, such as creating the
basic infrastructure (camping, facilities on river beaches), product quality
enhancement (creating and operating a specific quality certification system), and
promoting tourist activities both at regional and national level.
Eligible (indicative) activities
      Construction/modernization of tourism infrastructure or facilities to receive
       tourists
      Valorization of resources (natural or cultural) to create a new or extended
       tourism product
      Development of support infrastructure for the facilitation of integrated
       resort areas revitalization, through the attraction of private investments




Draft Regional Operational Programme of Romania – October 2005                    53
      Building or adding support tourism facilities (“niche” facilities, sports,
       business centers, etc) or adding new facilities (to develop new products or
       to create new offerings)
      Promotion actions to market existing or new tourism products, attractions,
       or areas
      Creating or modernizing tourist information centers
      Product or services improvements without a physical structure product
       (creation of specialist packages, etc.)
Potential final beneficiaries
Final beneficiaries for the actions under this operations are businesses operating
in the tourism industry, businesses offering support services to tourism
businesses, tourism related associations, NGOs and partnerships of the previous
entities.
Indicative selection criteria
Besides basic selection criteria, such as compliance with the ERDF fields of
interventions and eligibility rules, national and regional strategies and ROP
priorities, a number of more specific criteria are to be defined, including
indicatively the following:
      Maturity of the action – Pre-feasibility studies available
      Importance of the problem proposed to be solved by the action
      Justification and adequacy of the social acceptance of the action
      Availability of relevant licenses and approvals required by all components
       and projects related to the action
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)




III.4.Priority 4: Sustainable urban development
Rationale

Draft Regional Operational Programme of Romania – October 2005                 54
The concentration of population, economic and cultural activities, along with the
role of cities as transport nodes, gives them the statute of strategic points for
concentrating the investments in physical regeneration, enhancing the quality of
environment, economic growth and social services in the cities.
Previous experiences (Urban I and II) has been shown that integrated approach
of the economic, social and environment problems in deprived urban areas has
been the most successful way of tackling them. This means that it is necessary
to combine actions related to the physical renovation of the urban environment
with rehabilitation of the basic infrastructures in order to reply to the needs of the
new economic, socio-demographic and environment situations. This type of
approach also promotes the horizontal targets of the Community policy, such as
equal opportunities and sustainable development.
The priority 4 of the ROP strongly promotes the implementation of integrated
urban development projects. The advantage of the integrated approach in urban
regeneration consists in the fact that this type of projects can tackle
simultaneously correlated issues, which have a negative impact within and
around the action areas. In order to get a sustainable urban development,
investments should allow parallel intervention in economic development and
competitiveness, employment, environmental protection, integration of ethnic
groups and physical revitalization of the urban environment.
Poor infrastructure and basic urban services endowment in towns and cities is
another issue that affect the quality of life in urban areas and the attractiveness
of the Romanian towns and cities. In 2003 the ratio of urban housing connected
to sewerage system was only 68%, while just 72% of them were connected to
cool water system. As regard the other urban public utilities, 71% of the urban
houses were connected to thermal energy system and 75% were provided with
natural gas. Also, from total length of town streets (23.441 km), at national level,
in 2003 only 60% of them were modernized. The lack of public financial
resources after 1990 led to reduction of investments in public infrastructure, thus
many towns have outdated infrastructure, which needs to be replaced and
modernized.
Regarding the public urban transport at national level, public transport fleets
contains over 67% buses and only 33% environmentally friendly vehicles (22,4%
-tramways and 10,3% - trolley buses). Additionally, the public urban transport
fleets is obsolete, pollutes the environment and increases the costs of transport.


Draft Regional Operational Programme of Romania – October 2005                     55
For tackling these deficiencies, several types of actions are needed. First of all,
the rehabilitation of streets and of related public utilities is needed in order to
increase the accessibility and the quality of life of urban population. Secondly,
environmental friendly transport infrastructure extention and the purchase of
ecological vehicles for replacing the obsolete buses, trams and trolleys, will
provide a sustainable urban public transport, in line with EU norms. The above
actions will also aim at decreasing in the number of daily journeys made by urban
and suburban residents, which will lead to the decrease of pollution and increase
of the traffic speed.
General economic decline registered in Romania after 1990 led to industrial
restructuring, thus a series of enterprises were forced to close their doors.
Abandoned industrial buildings and lands had a negative influence on the
environment, image and attractiveness of the urban areas where they are
located. Also, along with unutilized/underutilized land in urban areas, they
sometimes affect the urban tissue. Because of that it is necessary to support the
rehabilitation of these buildings and lands for the development of new activities,
aiming at increasing the attractiveness of urban areas where they are located35.
Objectives
Priority 4 of the ROP aims at supporting interventions in the urban areas, in order
to revitalize the local economies and to create new jobs. The specific objectives
of this priority are:
        regeneration of small and medium-size towns or parts of large cities in
         order to diminish the present disparities, by integrated projects, designed
         in partnership, based on the urban masterplan. With this aim, the local
         authorities and all actors involved in urban development should adopt
         unique, coherent strategies to solve out social, economic, and
         environmental problems which are more and more frequent in urban
         agglomerations, leading to the improvement of the quality of life in the
         urban environment, also by creating favourable conditions to promote
         equal opportunities among men and women.
        revitalization of the urban centres with regional devlopment potential in
         order to act as economic development engines in the regions, by



35
   The information regarding the number and surface of in situ brownfield areas will be completed after the
finalization of the on going project regarding brownfield areas conducted under the MEI supervision.
Draft Regional Operational Programme of Romania – October 2005                                          56
         developing urban public infrastructure, improving the public transport
         urban network and other modern urban services.
        improvement the environment of urban centres affected by industrial
         restructuring and increase their attractiveness as good places for working
         and living, by rehabilitation the in-situ brownfield areas and preparing them
         for other type of activities, as well as by supporting the development of
         basic services and urban utilities.
Operations
4.1 Support of community development integrated projects
Integrated Urban Regeneration Action Programmes/Projects for distressed urban
areas (“urban action zones”) will be supported. This type of projects will combine
the rehabilitation of obsolete infrastructure with economic growth and
employment increase actions, which have a positive impact on the generation of
jobs and alternative income stemming from the diversification of productive
activities. Such activities will be complemented by measures to combat and
provide solutions to social exclusion and to upgrade the quality of the
environment. Implementation of such projects is expected to have a significant
impact on the revitalization of the targeted town centres and/or neighborhoods36.
The projects will have to include a pretty large diversity of actions which have a
horizontal and transversal effect on the area’s economic revitalization, on social
integration of disadvantaged group of population, on equal opportunities and on
active environmental policies that merge into the global and priority objective of
the Regional Programme, regarding the economically and socially regeneration


36
   According to Community Initiative URBAN II, the Urban Regeneration Action Plans should fulfil specific
eligibility criteria to be further decided upon, such as:
           Low level of/declining economic activities, ending traditional industrial activities and reduced
            opportunities of entering the labour market
           High levels of long-term unemployment
           High levels of poverty, visible in low incomes and social exclusion, marginalisation and
            insalubrity
           Specific need for urban reclassification and conversion, given the economic and social
            difficulties the targeted city areas are facing
           Large number of immigrants and/or refugees, and/or high number of inhabitants belonging to
            ethnic and/or minority groups
           Low level of education, low professional skills, significant skill deficiencies of the local
            population, and high rate of early school abandonment
           Low sense of security among the citizens, and respectively high levels of delinquency,
            criminality, drug abuse and/or violence
           Negative demographic trends
           A destroyed, neglected or deteriorating environment, including declining old historic centres,
            derelict land and/or buildings and deteriorating urban and social infrastructures
Draft Regional Operational Programme of Romania – October 2005                                           57
of Romanian urban areas, in compliance with National Strategy of Regional
Development and the Community Strategic Guidelines for the next programming
period 2007-2013.
During the selection process, projects will always be checked as regards their
compliance with Community policies and guidelines, especially regarding public
contracts, environment, equal opportunities, information and publicity.
Eligible activities
   Completion and/or consolidation of obsolete buildings in order to
    accommodate new economic and social activities, rehabilitation of historical,
    industrial and cultural heritage, provided that these activities are integrated in
    the overall urban regeneration concept, contribute to the creation of long term
    jobs and to social cohesion (individual projects may seek alternative sources
    of financing, e.g. under the ROP priority 3).
In order to satisfy the growing demand in housing, block-housing areas were
build in most cities and towns during the 70’s and 80’s. These were located either
in the centre or in the outskirts of the cities. Regarding the first situation, in most
cases, old buildings, some of great architectural and cultural importance, had to
be demolished in order to make room for the new ones. As for the second
situation, the new available buildings from the outskirts caused the abandonment
of old, central housing which underwent continuous deteriorating processes
because these were occupied by poor families and immigrants from rural areas.
After 1990, appeared and later on was intensified a process of building individual
houses in the suburban areas as a result of wealthy families’ preference for
individual homes.
The deterioration of a significant part of the country’s rich urban heritage requires
the implementation of methods aimed at its recovery and preservation. This area
of operations focuses on creating and enhancing tourist, social and economic
infrastructures by refurbishing and consolidating abandoned buildings as well as
on diversifying the offer by creating new tourist products such as conference
centres and other similar facilities.
Hotel constructions and tourist companies development are not eligible for
funding under this priority, but under the ROP priority 3.
   Recovery of derelict sites for new uses (including mixed); these will be eligible
    for funding under this priority only as an integral, inseparable and
    indispensable part of the overall urban regeneration activities (similar

Draft Regional Operational Programme of Romania – October 2005                      58
    individual projects may receive funding under the Environment Sectorial
    Operational Programme).
   Demolition of badly deteriorated buildings and/or structures, which don’t
    belong to the national, cultural heritage and were included in the urban
    development plans to be demolished.
   Development and/or rehabilitation of urban public infrastructure and utilities.
Certain urban areas have obsolete infrastructures that barely satisfy the
population's needs. This affects the life quality and discourages the
establishment of businesses and other economic activities in those areas. This is
clearly reflected in the old parts of cities, where buildings of great historical,
cultural and artistic value are in a state of abandon. Basic services are also
poorly provided and public spaces are deteriorating: street pavement in poor
condition, incomplete and /or inadequate street lighting, reduced surface of parks
and leisure areas, insufficient waste containers and bike lanes, etc. Also, cities
should be provided with suitable facilities for disabled people: ramps, elevators,
audible traffic signals, etc. These special infrastructures are not only needed by
directly targeted groups, they also provide better access for the population in
general. Population life quality in urban centres is also affected by the lack of
green spaces that, according to European laws should consist of a minimum of 5
square meters per inhabitant.
Actions supported in the framework of the above operations, include:
     renovating city streets;
     renovating public spaces and different type of urban infrastructure
      (pavements, sidewalks, public lighting, etc.)
     increase the endowment with parks, gardens, and other public spaces;
     adequately equipping city centres;
     creating the necessary infrastructure to allow low mobility persons to get
      an easy access to public buildings, adapting audio and visual information
      devices for individuals with hearing problems;
     creating small infrastructure for water treatment, transport and distribution;
     creating adequate infrastructures for preventing, recovering and recycling
      solid waste.
   Development of sports facilities and recreational areas

Draft Regional Operational Programme of Romania – October 2005                        59
The aim of this intervention area is to correct current deficiencies related to
sports and leisure facilities and equipment, in order to improve citizens’ health
and life quality. The co-financed activities consist of: facilities for sports games,
creating and/or preserving recreational areas, youth facilities and centres, etc.
   Social infrastructure and equipment
It is the fundamental responsibility of the public sector to satisfy specific social
needs, and therefore it is the responsibility of national administration units to
finance infrastructures meant to satisfy such needs. Meeting these needs has
also proven to be a major source of employment and life quality enhancement,
as well as a real help in achieving equal opportunities for both men and women,
by providing services that help them combine their professional and family duties:
child-care centres and old people's homes, assistance for disabled and under
age individuals, etc. This priority does not cover sanitation equipment, health
centres, hospitals or laboratories.
The most significant actions funded here will be focused on child-care centres,
old people's homes, centres providing assistance to disabled persons.
   Investments in information and communication equipment, as well as at
    promoting the citizens' effective use of new technologies. The financed
    actions will include the development of public ICT services, such as web sites
    providing direct and immediate access to municipal information and/or
    services, e-commerce promotion etc.
   Support to, and incubation of, business start-ups, commerce, cooperatives,
    and business associations in the urban action zones, integrated in the overall
    urban regeneration concept, in order to support the effectiveness of the urban
    regeneration activities;
   Increasing security and preventing crimes, i.e. by involving residents in the
    supervision of neighborhoods, closed circuit TV surveillance and counseling
    on security and protection against crime;
Involvement of citizens and local players in the designing, implementing and
monitoring of the programmes is a precondition for a better implementation of the
urban regeneration programmes. Strong partnership with de local communities
makes the programmes more effective and better targeted to local needs. Also,
the participative approach help to overcome raising scepticism of inhabitants
concerning administrational interventions.


Draft Regional Operational Programme of Romania – October 2005                    60
It is necessary to set up a national network connected to URBACT network for
exchange experience and promotion of good practice examples, as well as
project monitoring and evaluation.
Investments in housing are not eligible for funding under the ERDF. However,
when inadequate housing is inseparable from any attempt at effectively
addressing urban development, the programmes should give evidence of
additional financial allocations from the total eligible amount within specific
measures, granted from national and/or local authorities for housing
improvement. The programmes should also explain how housing refurbishment
actions are tightly connected with the ERDF-funded activities.
Potential final beneficiaries
The final beneficiaries will be:
   small and medium sized towns and cities with development potential, which
    according to the urban development plans have increasing relationships with
    the surrounding rural areas for which they can ensure on medium terms
    different types of functions and services.
   large cities with regional development potential, which according to the urban
    development plans can become regional development engines at the medium
    term
All the beneficiaries have to make the prove of the availability of urban
development strategies and updated urban development plans, in compliance
with National Spatial Planning and Environment National Strategy as well as with
EU Urban Policies and Strategy.
Indicative selection criteria
The criteria for selecting ROP-funded projects must take into consideration the
following aspects:
       the existence of plans or programmes on various administrative or
        territorial levels, that correspond to the integral development of specific
        areas or fields (the Overall Town and Country Plan, the Regional Town
        and Country Plan and the Detailed Town and Country Plan);
       the projects must satisfy certain local needs identified by analysis
        objective instruments and mechanism;
       its subsequent investment, as well as its management                and/or
        maintenance, must be technically and economically viable;
Draft Regional Operational Programme of Romania – October 2005                  61
      the projects must have a positive impact on the creation of work places
       and alternative income sources, and promote equality of chances for both
       men and women;
      taking into consideration the economic and social development potential of
       the project area;
      the direct impact of the respective investment in achieving the Programme
       goals, especially those concerning the rules enforced on a community or
       national level.
And:
      Maturity of the action
      Availability of relevant licenses and approvals required
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)


4.2. Support of environment friendly transport infrastructure, related
    public utilities and public services
4.2.1. Investments enhancing urban mobility by development of an efficient
       public transport network in cities/towns
Support will be offered to those activities meant to decongestion urban public
transport and to protect the environment as much as possible, thus providing a
good city life quality.
Eligible activities
Projects expected within this area of intervention will include:
      Building bus stations, tramways stations, etc, or consolidating the already
       existing ones.
      Extending and/or upgrading tramway network and trolley infrastructure
      Replacing the existing public transport fleets with environment-friendly
       vehicles (buses, tramways, trolleys


Draft Regional Operational Programme of Romania – October 2005                 62
          Setting traffic monitoring and control systems to increase traffic flow, to
           inform in real time the users of the public transport system also installing
           passenger information systems, emergency centres;
          All other initiatives to promote modern urban and commuter transportation
           system as for example: introducing a unique ticketing system for all types
           of urban public transport; creating pedestrian areas, building lanes for
           buses and taxis.
Potential final beneficiaries
The beneficiaries of this area of intervention will be the cities and towns
Municipalities and their subordinated public transport companies (RATs37). The
projects will be considered eligible only if they derive from clear, approved and
reasonably justified urban public transport strategies. Criteria for project selection
should incorporate the evolution of the public transport share of the overall
transport outcome within the cities and towns, age of the public vehicles or
number of kilometres covered, number passengers per bus or per line, etc.
Indicative selection criteria
As the projects wouldn’t be eligible if no clear strategy for public urban transport
has been approved and reasonably justified. Criteria for project selection should
incorporate the evolution of the public transport share of the over all transport
outcome within the cities and towns, age of the public vehicles or kilometres
performed, passenger per bus or per line, etc.
Other selection criteria may be:
          Maturity of the action
          Availability of relevant licenses and approvals required
          Capacity of the final beneficiary to manage, monitor and ensure the follow-
           up of the proposed action
          Capacity of the technical department of the final beneficiary to supervise
           the implementation of the action (for infrastructure projects)


4.2.2. Street rehabilitation and related public utilities, (water pipelines,
          electricity, gas, etc.)


37
     Local Transport Companies

Draft Regional Operational Programme of Romania – October 2005                      63
Most Romanian cities and towns are already implementing street rehabilitation
programs. This process needs to be intensified in order to enable the increase in
traffic speed and avoidance of congestions, which will lead to an increase in
urban life quality. Related public utilities infrastructure has deteriorated and
water, electricity, gas, phone and other supplies networks needs be renewed.
The obsolete central heating facilities installed some decades ago, which now
need to be replaced and / or modernized, represent also a rather delicate issue.
In this context, it is to be noticed that more and more cities and towns are trying
to finance their replacement with natural gas or LPG system.
Eligible activities
Projects expected within this area of intervention shall include:
      Street rehabilitation
      Modernization of related public utilities (water, electricity, gas, phone and
       other supplies networks)
Potential final beneficiaries
The beneficiaries of this action will be cities and towns Municipalities. Eligible
projects will be only those deriving from and compatible with urban Master Plans
(PUG).
Indicative selection criteria
The approval of the street priorities and the coherence with its urban Master Plan
(PUG) will be set up as a condition for project eligibility. Distribution of assistance
will take account the total length and the rehabilitation rate.
Other selection criteria may be:
      Maturity of the action
      Availability of relevant licenses and approvals required
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)


4.2.3. Public urban services



Draft Regional Operational Programme of Romania – October 2005                      64
Eligible activities
      Investments in cultural, sports and leisure amenities and facilities -when it
       can be demonstrated that these meet an existing demand/market, and
       therefore may contribute to local economy enhancement, to long term jobs
       creation, to social cohesion consolidation and to life quality improvement
       in towns and cities;
      Improving or adoption modern approaches to urban administration,
       including e-government applications, methods meant to improve the
       citizens’ access to information, active involvement in the policy
       development and decision-making process; information campaigns, etc.
      Promotion of and investment in telematic services with respect to the
       citizens’ access to and efficient use of intelligent traffic control and
       communication systems, promotions regarding the use of Internet, etc.
      Development of urban public services and exploitation of the potential of
       information companies technologies in order to improve the supply of
       services of public interest for citizens and small enterprises.
      Investment in, and support for the use of, information systems for efficient
       management of human resources, training and employment opportunities,
       and social services such as health care, education, culture etc.
      Support of local authorities for know-how and technology transfer from
       experienced EU members; studies and assessments regarding the re-
       organisation and improvement of public services; database on good
       practice in urban management and sustainability; promotion of new and
       modern urban management structures, including personnel training;
       introduction of local sustainability indexes, follow-up of their uses and
       possible improvements.
Potential final beneficiaries
The beneficiaries of this action will be cities and towns Municipalities.
Indicative selection criteria
      Maturity and justification of the action
      Availability of relevant licenses and approvals required
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action

Draft Regional Operational Programme of Romania – October 2005                   65
        Capacity of the technical department of the final beneficiary to supervise
         the implementation of the action (for infrastructure projects)
4.3 Rehabilitation of in situ38 brownfield areas for development of new
activities
Support for the rehabilitation and redevelopment of unused in situ brownfield
areas in order to promote their conversion and functional adjustment to new
uses, including their mixed use in an urban context39.
This area of operations is aimed at the rehabilitation and recovery of deteriorated
urban spaces that are unused or underutilized, through an integral approach that
permits the conversion of these spaces into new urban centres targeting private
investment and an improved quality of life for area residents.
These areas are usually facing serious environmental problems, but at the same
time they can be exploited for the benefit of the cities and towns, when there is
the possibility to convert them for other purposes such as public spaces, social
centres, sports and/or educational centres.
Priority will be given to brownfields located in disadvantaged city areas and which
seriously affect urban structure and functions.
In order to become eligible under this action, the targeted areas have to meet a
series of minimal conditions:
        To be located in cities or towns with a population of over…inhabitants
        To be at least ……hectares wide
        Priority will be given to areas located in historical centres or to those
         acting as connectors between functional city or town areas
        The actions taken have to contribute to creating work places, reviving
         economic activities and to integrating the targeted area in the surrounding
         urban structure.
Given its surface area within the municipality, its rehabilitation implies an
enormous technical and financial effort of local authorities. For that reason, this



38
   In situ brownfiel areas contain abandoned insdustrial areas as well as underused/unused plots of land
within cities
39
   Brownfield areas rehabilitation/improvement activities, which aim at the creation of industrial facilities,
parks, or other facilities exclusively or predominantly industrial, shall not be eligible for financing inside this
measure; these can be funded through the Competitively SOP.

Draft Regional Operational Programme of Romania – October 2005                                                  66
area of operations will include the drawing up of urban development plans and
studies.
Eligible activities
Priority will be given to actions focused on the creation of green areas, walking
paths, sports and social or educational facilities, especially for training in the use
of new technologies or for the promotion of environmental activities.
Activities carried out under this area of operations must include actions aimed at
introducing community development and participation.
Housing cannot be subsidized under this action. If the creation of new housing is
vital for the development plan of the area, then it must entirely rely on private
funding sources that will be specified in the development plan.
Projects prioritizing criteria will be: technical quality of the area's development
plan, economic viability, and synergy with other ROP operations, geographic
homogeneity, and the size of the area in relation to the municipality and its
population, as well as its degree of physical deterioration.
Potential final beneficiaries
Municipalities of cities/towns that have projects based on urban development
plans derived from Master Plans and Local Strategies.
Indicative selection criteria
      Maturity and justification of the action
      Availability of relevant licenses and approvals required
      Capacity of the final beneficiary to manage, monitor and ensure the follow-
       up of the proposed action
      Capacity of the technical department of the final beneficiary to supervise
       the implementation of the action (for infrastructure projects)




III.5 Priority 5: Technical assistance
Rationale
Technical Assistance is a tool to be used by the Institutions in charge of
managing the Regional Operational Program in order to enhance quality and
speed up the coherence of actions as well as to ensure that the best and most
Draft Regional Operational Programme of Romania – October 2005                     67
effective use is made of it.
As stated in the Article 44 of the proposal for a COUNCIL REGULATION laying
down general provisions on the European Regional Development Fund, the
European Social Fund and the Cohesion Fund, presented by the Commission
(COM(2004)492 final, 14.7.2004), dedicated to Technical Assistance of the
Member states,
“At the initiative of the Member State, for each operational programme, the Funds
may finance preparatory, management, monitoring, evaluation, information and
control activities and activities to reinforce the administrative capacity for
implementing the Funds within the following limits:
a) 4% of the total amount allocated to each operational programme under the
“Convergence” and the “Regional competitiveness and employment”
objectives...”.
In order to define the Technical Assistance that will be necessary for the
implementation of the ROP, we take into consideration the proposal for
Institutional Arrangements (ROP Implementation System) included in the
Chapter 21 of the acquis communautaire.
According to Governmental Decision No. 402/23.03.2004, the Managing
Authority for Regional Operational Programme is set up within the structures of
the Ministry of European Integration and will be built up from the Directorate
General for Regional Development.
The Intermediate Bodies for the implementation of operations under the Regional
Operational Programme are the eight Regional Development Agencies. Service
contracts regarding the delegation of attributions will be concluded by the ROP
Managing Authority with each RDA for the duration of the programme. The
contracts will include conditions relating to:
   -   the organizational structure of the IB and separation of functions
   -   maintenance of adequate levels of trained staff and monitoring of training
   -   maintenance of network systems
   -   attainment of a recognized management standard




Draft Regional Operational Programme of Romania – October 2005                  68
                      SWOT analysis for technical assistance

                  STRENGHTS                                          WEAKNESSES

   Motivated and professional staff in the MA, FB       Some other staff has a lack of skills
    and IB                                                concerning EU SF management.
   Partnership already existing between MA, IB          Low salaries of the staff working in MA, IB
    and Final Beneficiaries, built during PHARE           and FB.
    period.                                              Temporary contracts for the staff: un-
   Some staff already familiar with EU funds             stability.
    management.                                          Low capacity for co-financing projects at
   Technical Staff in Municipalities and Judets          FB level.
    have on the ground information about the local       Low level of knowledge about ROP fields
    needs.                                                of interventions.
                                                         Low capacity of some FB for prioritizing
                                                          projects.
                                                         RDAs do not provide the right assistance
                                                          to FB to allow the to prepare and manage
                                                          successful projects.
                                                         There is not enough awareness of EU
                                                          possible     assistance    for     Regional
                                                          Development in Romania.

                OPPORTUNITIES                                           THREATS

   TA will allow staff to improve skills for EU SF      TA will substitute local capacities for
    management.                                           external support, so after ROP no
   Better salaries and work conditions for staff.        knowledge will remain in the Final
   TA will improve awareness and knowledge               Beneficiaries and IB.
    about regional development and the role of EU.       Instead of partnership there could be a
   TA will help to develop and reinforce the             conflict between MA, IB and FB if the role
    already existing partnership at regional level.       and competences of each stakeholder are
   ROP will help to empower local capacities for         not clear from the beginning.
    regional development                                 Un-correct use of TA will mean a deficient
                                                          pipeline of projects, and the risk to lose
                                                          EU financial assistance.



Operations
5.1 Support for the implementation and overall management of the ROP
Make available the staff, the media (IT and office equipment) and the external
expert support necessary for the smooth implementation and overall
management of the ROP.
Actions will include:
5.1.1 Support to different phases of the Programme/Project Cycle
        Management including preparation selection, internal evaluation,

Draft Regional Operational Programme of Romania – October 2005                                 69
       monitoring and control
Carrying out preparatory, selection, evaluation and monitoring activities arising
during the implementation of the ROP, including the preparation, selection,
evaluation and monitoring of projects. At the same time, costs related to the
preparation of a concrete project, will be eligible under ROP priority 1.
At the MA level, special attention will be given to:
      Regional policy formulation
      ROP/PC programming and adjustment.
      Coordination of Annual Implementation Reports
      Coordination of project pipeline building
      Coordination of project application, appraisal, selection, compliance,
       contracting & monitoring systems
      Participation in regional project selection committees
      Coordination of Art.4 on the spot checks by IBs
At the IB level , special attention will be given to:
      Guidance to beneficiaries
      Regional project pipeline development
      Project appraisal & selection (Activity to be done by external experts
       contracted by the MA)
      EC policy compliance check
      Advice to Final Beneficiaries for public Contracting
      Management Information System data entry
      Project monitoring – Art. 4 on the spot checks
5.1.2 Support to ROP Monitoring Committees and Regional Coordination
      Committees regarding all what is related to the organisation and
      logistics
The Monitoring Committee for the ROP as well as the Regional Coordination
Committees will be based on the current structures, existing in the pre-accession
phase, respectively the National Board for Regional Development (NBRD) and
Regional Development Boards (RDBs – established in each of the eight
development regions), although with modified membership.

Draft Regional Operational Programme of Romania – October 2005                70
The following costs of the Monitoring Committee and the Regional Coordination
Committees will be covered by TA:
      At the MA level the secretariat role of the Monitoring Committees.
      Organisation of meetings,
      Translation and interpretation.
      Covering costs related to the meetings (e.g. costs of transport,
       accommodation and daily allowances),
      Preparation and copying of documents of the Monitoring Committee and
       Project Selection Committee,
      Documentation of meetings
      Keeping continuous contact with members of the Monitoring Committee
       and Project Selection Committee
      Support for consultation activities assisting the work of the Monitoring
       Committee and Project Selection Committee
5.1.3 Improvement and use of evaluation methods including ex-ante, mid-
       term, ex-post and final evaluations exercises. External evaluation.
As stated in the Article 45.4 of the proposal for a COUNCIL REGULATION laying
down general provisions on the European Regional Development Fund, the
European Social Fund and the Cohesion Fund, presented by the Commission
(COM(2004)492 final, 14.7.2004), “Evaluations shall be financed from the budget
for technical assistance”.
External evaluation will be contracted by the MA.
5.1.4 Support to MA and payment Authorities for tasks related to audit,
       interim control and other expenditures required to improve process
       and functioning
The MA will be responsible for the activities of Internal Audit and Financial
Management and Control. There will be a clear separation of both functions.
At the level of MA, special attention will be given to:
      Concerning internal audit: Systems audit of MA and IBs and Undertaking
       Art. 10 - 5% checks.


Draft Regional Operational Programme of Romania – October 2005               71
         Concerning financial control: Audit trail & ex-ante financial control
          procedures and Certification of expenditure incurred at programme level.
         Concerning Liaison with Paying Authority: Transmission of payment
          requests to PA, Reporting irregularities, Recovery of sums wrongly paid
          out, Implementation of financial corrections.
At the level of IB, special attention will be given to:
         Concerning internal audit: Internal Audit of IB management systems, Audit
          of final beneficiaries’ grant management systems, checking adequacy of
          final beneficiaries’ systems to audit final payment claims.
         Concerning financial control: Ex-ante control and check of financial
          aspects of contracts, Maintenance of audit trail, Validation of payment
          claims & transmission to MA, Ensuring beneficiaries’ final claims are
          audited, Reporting irregularities to MA.
5.1.5 Organisation of seminars and training sessions building skills
          capacity for IB/MA staff
Both the Managing Authority and the Intermediate Bodies will need to build their
capacities for personnel management and training in order to meet the new
demands in order to manage the ROP. TA will finance the training program and if
necessary exchange of experiences including study visits to other EU countries.
5.1.6 Improve administration capacity (IT infrastructure)
Acquisition and installation of IT and office infrastructure for ROP management
and monitoring system i.e. computer system for ROP management and
implementation and for information analyses.


5.2       Support to the Communication Strategy of the ROP
Structural Funds Regulation states that the Managing Authority is responsible for
creating awareness on ROP actions, and in particular for informing potential final
beneficiaries, trade and professional bodies, the economic and social partners,
bodies promoting equality between men and women and non-governmental
organisations about the opportunities afforded by the assistance and for
informing the general public about the role played by the Community in the
assistance concerned and its results.
Actions will include:

Draft Regional Operational Programme of Romania – October 2005                  72
      -   Information, publicity and dissemination activities targeting public society
          and potential beneficiaries regarding possibilities offered by Structural
          Funds.
      -   Elaboration of practical guidelines for SF management adapted to
          Romanian framework.
      -   Information materials (Publication        of   pamphlets,   posters,   etc.),
          communication to beneficiaries, etc.
      -   Organisation of conferences, professional forums, presentations, road-
          shows


5.3       Studies and Statistics
To improve the knowledge about the impact of ROP interventions on the
Regional Development, and to analyze specific aspects of the ROP interventions
at the regional and national level.
The ROP will support the following actions:
      -   Studies which aim at increasing regional stakeholder capacities (IB, final
          beneficiaries), linked to the areas of intervention of the current ROP
      -   Studies linking SOP interventions with respective ROP areas of
          interventions. The results of this targeted studies will be used to mature
          either ROP or SOP projects
      -   Studies concerning environmental impacts of the SF interventions in the
          Regions.
      -   Studies concerning the impacts of SF interventions on growth and
          employment in the Regions.
      -   Improvement of regional statistics to ensure the functionality of the ROP
          monitoring system.
      -   Sectoral studies to identify horizontal interventions with comparative
          advantages for the regions.




Draft Regional Operational Programme of Romania – October 2005                      73
   IV.     FINANCING PLAN OF THE ROP




Draft Regional Operational Programme of Romania – October 2005   74
V.     COMPLEMENTARITY OF ROP OPERATIONS WITH
       OTHER SF CO-FINANCED ACTIONS

V.1 Complementarity with other programmes co -
    financed by the ERDF and the ESF


V.2 Complementarity with operations co -financed
    by the European Agricultural Fund




Draft Regional Operational Programme of Romania – October 2005   75
VI.     IMPLEMENTATION ARRANGEMENTS FOR THE ROP

VI.1 Introduction
……….


VI.2 Management
……….


VI.3 Monitoring and evaluation

The ROP implementation in Romania will be performed in accordance with the
provisions of Council Regulation40 laying down general provisions on the
Structural Funds implementation. This chapter provides with an explanation of
the monitoring and evaluation mechanisms provided for the implementation of
the ROP. It is mainly the Managing Authority and the Monitoring Committee that
shall ensure the quality of the implementation of the Operational Programme


Managing Authority
According to Governmental Decision No. 402/23.03.2004, the Managing
Authority for the Regional Operational Programme is set up within the structures
of the Ministry of European Integration. The Managing Authority (MA) is built up
from the Directorate General for Regional Development.
The management of the ROP will be ensured by the Managing Authority together
with the eight Regional Development Agencies (RDAs) that have been set up
under the Law No.151/1998 regarding the regional development in Romania.
The Intermediate Bodies for the implementation of projects under the Regional
Operational Programme are designated within the eight Regional Development
Agencies according to the acquis communautaire on Chapter 21 – Regional



40
  Brussels, COM(2004) 492final, Proposal for a COUNCIL REGULATION laying down general provisions
on the European Regional Development Fund, the European Social Fund and the Cohesion Fund.

Draft Regional Operational Programme of Romania – October 2005                               76
policy and co-ordination of structural instruments, in force on 31 December
200341.
The Managing Authority shall be responsible for managing and implementing the
ROP in accordance with the principle of sound financial management, in
particular for:
a) ensuring that operations are selected for funding in accordance with the
   criteria applicable to the ROP and that they comply, for their whole
   implementation period, with applicable Community and national rules;
b) verifying the delivery of the co-financed products and services and that the
   expenditure declared by the beneficiaries for operations has actually been
   incurred and complies with Community and national rules;
c) ensuring the operation of the MIS at the level of the ROP, for recording and
   storing in computerized form accounting records of each operation under the
   ROP and that the data on implementation necessary for financial
   management, monitoring, verifications, audits and evaluation is collected;
d) ensuring that beneficiaries and other bodies involved in the implementation of
   operations maintain either a separate accounting system or an adequate
   accounting code for all transactions relating to the operation without prejudice
   to national accounting rules ;
e) ensuring that the evaluations of the ROP are carried out in accordance with
   Article 45 of the Council Regulation;
f) setting up procedures to ensure that all documents regarding expenditure and
   audits required to ensure an adequate audit trail are held in accordance with
   the requirements of article 88 of the Council Regulation;
g) ensuring that the certifying authority shall receive all necessary information
   on the procedures and verifications carried out in relation to expenditure for
   the purpose of certification;

41
   The same document also specifies the involvement of all other institutions (as IBs or as Implementing
Agencies) to which the RDAs will delegate the task of managing operations or deliver specialist measures
under the ROP. These may be different regional and local non-government bodies and institutions, such as:
        Government structures at regional level;
        County Councils/other regional/local entities (Communal Councils);
        Municipal Councils – urban regeneration packages;
        Local Chambers of Trade and Industry;
Additional bodies will be responsible for creating regional partnerships, particularly in relation to the
preparation of projects, including their co-financing and preliminary environmental assessment, and for
providing information and publicity about the programme.


Draft Regional Operational Programme of Romania – October 2005                                        77
h) guiding the work of the Monitoring Committee and providing it with the
   documents required to permit the quality of the implementation of the ROP in
   the light of its specific goals;
i) drawing up and, after approval by the Monitoring Committee, submitting to the
   Commission the annual and final reports on implementation;
j) ensuring compliance with the information and publicity requirements laid
   down in Article 68 of the Council Regulation;


Monitoring Committee
The Regional Operational Programme Monitoring Committee (ROPMC) will be
established to oversee the implementation of the programme and its evaluation.
It will draw up its rules of procedure within the Romanian institutional, legal and
financial framework and adopt them in agreement with the Managing Authority in
order to exercise its missions in accordance to the Council Regulation. It will be
chaired by a representative of the Ministry of European Integration. Its
composition shall be decided in agreement with the Managing Authority. It will be
assisted by a permanent secretariat responsible for the preparation of papers for
discussion by the Monitoring Committee or for clearance by written procedure,
agendas and minutes of meetings.
At its own initiative or at the request of the Monitoring Committee, a
representative of the Commission shall participate in the work of the Monitoring
Committee in an advisory capacity. A representative of the EIB and the EIF may
participate in an advisory capacity for those operational programmes to which the
EIB or the EIF makes a contribution.
The ROPMC will reflect the principles of partnership. It will comprise
representatives from other Ministries and Government bodies, the European
Commission (in an advisory capacity), social partners and other national
organisations with an interest in and contribution to make to the effective
implementation of the ROP. The Monitoring Committee will aim to have a gender
balance amongst its members.
The ROPMC will normally meet at least two times each year and will manage the
implementation of the Regional Operational Programme, in particular:




Draft Regional Operational Programme of Romania – October 2005                  78
a) by considering and approving the criteria for selecting the operations financed
   within six months of the approval of the operational programme and approve
   any revision of those criteria in accordance with programming needs;
b) by proceeding with periodical reviews in order to check progress made
   towards achieving the specific targets of the operational programme on the
   basis of documents submitted by the Managing Authority;
c) by examining the results of implementation, particularly achievement of the
   targets set for each priority and the evaluations referred to in Article 46 of the
   Council Regulation;
d) by considering and approving the annual and final reports on implementation
   referred to in Article 66 of the Council Regulation
e) by receiving information on the annual control report, or of the part of the
   report referring to the operational programme concerned, and of any relevant
   comments the Commission may make after examining that report or relating
   to that part of the report;
f) by proposing to the Managing Authority any revision or examination of the
   operational programme likely to make possible the attainment of ERDF
   objectives referred to in Article 3 of the Council Regulation or to improve its
   management, including its financial management;
g) by considering and approving any proposal to amend the content of the
   Commission decision on ERDF constribution.
In addition, the ROPMC will also be responsible for decisions relating to
implementation, policy and visibility of the programme.


Monitoring arrangements
The quality of the implementation of the ROP shall be ensured by the Managing
Authority and the Monitoring Committee.
Monitoring shall be carried out by the Managing Authority and the Monitoring
Committee by reference to financial indicators and the indicators specified in the
ROP document.




Draft Regional Operational Programme of Romania – October 2005                    79
Reporting
Annual report
In accordance with art. 66 of the Council Regulation, the Managing Authority will
send to the Commission within six months of the end of each full calendar year42
of implementation an annual implementation report and by 31 December 2016 a
final report on the implementation of the operational programme. The first report
will be due by 30 June 2008. The report must be examined and approved by the
Monitoring Committee before it is sent to the Commission.
Once the Commission has received the report, it shall indicate within a period of
10 working days from the day of its receipt if the report is considered
admissible43. The Commission shall inform the Member State of its opinion on
the content of an admissible annual report on implementation submitted by the
Managing Authority within two months from the date of receipt. For the final
report on the operational programme, the time limit shall be a maximum of five
months from the date of receipt of an admissible report. If the Commission does
not respond within the time limit laid down, the report shall be deemed to be
accepted.
The annual report shall give a clear view of the implementation of the ROP. It
shall include the following information:
a) the progress made in implementing the ROP and priorities in relation to their
   specific, verifiable targets, with a quantification, wherever and whenever they
   lend themselves to quantification, of the physical indicators and the indicators
   referred to in Article 36 of the Council Regulation, at the level of priority;
b) the financial implementation of the ROP, detailing for each priority the
   expenditure paid out by the certification and payment authority and the
   corresponding public contribution, the total payments received from the
   Commission, and quantifying the financial indicators referred to in Article 65
   of the Council Regulation;
d) the financial implementation by field of assistance adopted by the
   Commission in accordance with the procedure referred to in article 104 of the
   Council Regulation;




42
     By 30 June each year.
43
     “Admissibility” of an annual report is judged according to the relevant provisions of the Council Regulation.

Draft Regional Operational Programme of Romania – October 2005                                                 80
e) the steps taken by the Managing Authority or the Monitoring Committee to
   ensure the quality and effectiveness of implementation, in particular:
   i) monitoring and         evaluation    measures,      including   data   collection
      arrangements;
   ii) a summary of any significant problems encountered in implementing the
       operational programme and any measures taken;
   iii) the use made of technical assistance;
f) the information and publicity measures taken for the ROP;
g) a statement by the Managing Authority that, in so far as they are aware,
   community law has been complied with in the implementation of the ROP.
   Where problems have been encountered, the Managing Authority should
   qualify the statement and identify these problems and the measures taken to
   deal with them;
i) the use made of assistance repaid or re-used following cancellation as
   referred in Articles 99(2) and 101(3) bis of the Council Regulation to the final
   beneficiaries during the period of implementation of the ROP.
The breadth of information transmitted to the Commission shall be proportional to
the total amount of public expenditure of the ROP, and, where appropriate, such
information may be provided in summary form.
Information referred to in points e), f) and i) shall not be included if there was no
significant modification since the previous report.


Evaluation
The Managing Authority bears responsibility for providing the resources
necessary for carrying out evaluations, organise the production and gathering of
the necessary data and use the various types of information provided by the
monitoring system.
Ex-ante evaluation
The ex-ante evaluation of the ROP is carried out under the responsibility of the
Romanian authorities and the future Managing Authority of the ROP, which is
also responsible for the preparation of the ROP programming document.
Ex-ante evaluation aims to optimise the allocation of budgetary resources under
the ROP and improve programming quality. It shall identify and appraise the
Draft Regional Operational Programme of Romania – October 2005                      81
disparities, gaps and potential for development, the goals to be achieved, the
results expected, the quantified targets, the coherence, if necessary, of the
strategy proposed for the region, the Community value-added, the extent to
which the Community’s priorities have been taken into account, the lessons
drawn from previous programming and the quality of the procedures for
implementation, monitoring, evaluation and financial management.
Monitoring evaluations
During the implementation period of the ROP, the ROP Managing Authority will
be responsible for carrying out regular evaluations linked to the monitoring of the
ROP, in particular where the monitoring reveals a significant departure from the
goals initially set or where proposals are made for the revision of the ROP.
The results of those evaluations will be sent to the ROP Monitoring Committee
and to the Commission.
Strategic evaluations
Strategic evaluations may be carried out by the Commission and at its initiative,
in partnership with the ROP Managing Authority. Those evaluations will be
linked to the monitoring of the ROP where the monitoring of programmes reveals
a significant departure from the goals initially set. The results shall be sent to the
Monitoring Committee.
Ex-post evaluation
The ex-post evaluation of the ROP and each of its objectives, will be carried out
by the Commission, in close co-operation with the ROP Managing Authority,
Ex-post evaluation will examine the extent to which resources were used, the
effectiveness and efficiency of ERDF programming and the socio-economic
impact of the co-financed actions. It shall also identify the factors having
contributed to the success or failure of the implementation of the ROP and
identify good practice. Ex-post evaluation shall be completed by 31 December
2015.




Draft Regional Operational Programme of Romania – October 2005                     82
VI.4 Financial management and control
……….



VI.5 Information and Publicity
……….



VI.6 Management Information System (MIS)


……….




Draft Regional Operational Programme of Romania – October 2005   83
ANNEX 1
Global Indicators for ROP 2007 -2013




Draft Regional Operational Programme of Romania – October 2005
ANNEX 2
Flow chart on financial management and
control




Draft Regional Operational Programme of Romania – October 2005
ANNEX 3
State aid table




Draft Regional Operational Programme of Romania – October 2005
ANNEX 4
Statistical tables & maps




Draft Regional Operational Programme of Romania – October 2005

				
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