Romania - Project FinancingRomania - Project Financing
Project financing from public and quasi-public institutions is an important source of investment capital for infrastructure projects in Romania and other countries in the region. Especially as the tide of private investment ebbs, or at least becomes more selective, the roles of international financial institutions such as the International Monetary Fund (IMF) and the EU in cooperation with the World Bank Group (IBRD, IFC, MIGA), the EBRD, and the European Investment Bank – EIB, become even more important.
- EU Structural and Investment Funds (ESIF)
Tenders issued by Romanian public contracting authorities for projects supported by EU grants are subject to EU public procurement legislation. For more information on these programs, please see the market research section on the website of the U.S. Mission to the EU: www.export.gov/europeanunion/marketresearch/index.asp
- The Cohesion Fund
- Trans-European transport projects including transport infrastructure; and
- Environment, including areas related to sustainable development and energy for projects with environmental benefits.
- These projects are, in principle, co-financed by national authorities, the European Investment Bank, and the private sector: www.ec.europa.eu/regional_policy/thefunds/cohesion/index_en.cfm
U.S. Ex-Im Bank provides export credit insurances, loan guarantees, and direct loans for U.S. exports to Romania. Although most of the credit has been for exports to the Romanian government, private sector and sub-sovereign financing is available as well.
- Ex-Im Bank issues short-term (180 days) insurance coverage for exports to Romania. Medium- and long-term coverage is only available for public sector transactions. Ex-Im Bank provides insurance through its affiliated agent, the Foreign Credit Insurance Association: www.exim.gov
U.S. Overseas Private Investment Corporation (OPIC)
OPIC offers U.S. project financing and insurance through direct loans, loan guarantees, and political risk insurance, as well as equity financing through OPIC-supported investment funds. OPIC can co-finance with other bilateral and multilateral development finance institutions, such as the EBRD and IFC: www.opic.gov
Romanian Ministry of Public Finance (MFP)
MFP issues Romanian government guarantees for projects up to $66.7 million. The Ministry must submit guarantees for larger projects to an inter-ministry committee and the cabinet for approval. Government guarantees are approved on the basis of feasibility studies, which must contain a clear description of the financial package for the project. The government and IFIs may jointly support viable private sector projects: www.mfinante.ro