Romanian Economy Overview

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Romanian Economy Overview Investment Projects in
Infrastructure
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Romania General Overview
Inflation rate

Annual inflation rate In Central and Eastern
Europe
annual average rate

annual rate
dec
dec
Mth. rate
Source NBR
Source NBR
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Romania General Overview Ratings Standard
Poor's Ratings Services Long-term foreign
currency sovereign credit rating of Romania
raised to 'BB' from 'BB' The long and short-term
local currency sovereign credit rating were
raised to 'BBB-' and A-3, from 'BB' and 'B'
The outlook is stable. Fitch Ratings Long-term
foreign currency IDR affirmed at 'BBB' Outlook
changed to Negative from Stable Long-term local
currency IDR affirmed at 'BBB' Outlook changed
to Negative from Stable Short-term foreign
currency IDR affirmed at 'F3'
Country Ceiling affirmed at 'A-' (A
minus) Moodys Investor Service Long-term
foreign currency 'BAA3' Long-term local
currency 'BA1' Foreign Investments In the
last period, more and more companies are
interested to invest in the Romanian market, at
several economical sectors. The start was given
in Bucharest, but this will continue with others
big cities Timisoara, Cluj, Iasi, Constanta,
Brasov, Craiova, Oradea. To sustain such a
development is needed a very good infrastructure.
In 2007 were invested more than 10 billions euros.
GDP 2005 2006 2007 2008 2013
Bln Ron 288 342.4 390.8 442.8 711.2
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• Main Infrastructure Projects
• Highways
• Till 2013 will be finished more than 5 highways
  in all the country which will bind most
  important cities with the capitals of important
  UE countries.
• Bucuresti Pitesti Sibiu Deva Timisoara
  Nadlac
• Bucuresti Constanta
• Bucuresti Brasov Targu-Mures Cluj Napoca
  Oradea Bors
• Bucuresti Giurgiu
• Bucuresti Ploiesti Focsani
• Roads
• Will be rehabilitated the most important County
  roads between the main cities with population
  over 200.000 habitants. In 2007 were
  rehabilitated DN1, DN5, DN6, etc. Around the most
  important cities was stated the contraction of
  circle roads.
• Railways
• Bridges
• In 2007 were started the reconstruction projects
  for bridges over Danube (CalafatVidin) and Prut
  (Radauti PrutLipcani).
• Airports in progress and planned

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HIGHWAYS PLANNED December 2007
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HIGHWAYS PLANNED December 2008
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HIGHWAYS PLANNED December 2013
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• Main Infrastructure Projects in Bucharest
• 2.756 km water distribution network
• 2.541 km sewerage network
• 2.947 km gas distribution network
• 1357 km heating network
• 18.565 km electric network
• 13.796 km telephony network
• 368 km Public transportantion lines
• 1820 km 5340 roads
• Passages in construction
• Basarab Passage over the railway, from Blvd.
  Titulescu to Grozavesti Bridge
• Obor Passage for tramway lines over the
  crossroads
• Baneasa Under Passage from Bd. Aerogarii to
  Blvd. Ion Ionescu de la Brad
• Colentina Passage at Doamna Ghica
• Piata Sudului Passage
• Razaoare Passage
• 13 Septembrie Passage

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• Main Infrastructure Projects in Bucharest
• Projects started in 2007
• Rehabilitation of more than 3 of the main
  streets
• Modernization of tramway lines (ex. 32, 34, 35,
  7, 12, 11, 44, etc.)
• changing of the gas conducts medium and low
  pressure
• Rehabilitation of water lines and sewerage
• Rehabilitation of Water Cleaning station from
  Glina total value 92.989 mil euros
• -  ISPA founds (59) - 55.083.966 EURO-  BERD
  loan (11) - 10.000.000 EURO-  BEI loan (27) -
  25.000.000 EURO-  State budget (3) - 2.905.000
  EURO
• Objectives
• Rehabilitation and supplementation of the
  existing water line
• Rehabilitation and supplementation of the mud
  line in concordance with the necessity of the
  water line
• The including of new hoarding tank for
  collecting the excess rain waters
• The demolishment of deteriorated buildings
• The installation of new line of water
  alimentation and sewerage for Glina, Catelu and
  Manolache villages
• Baneasa Airport Renovation

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• Infrastructure Projects - Financing
• Financing instruments non reimbursable founds
• PHARE
• SAPARD
• ISPA
• Private financing from specialized banks for
  the Public Sector
• ex. part of Volksbank Group Dexia
  Komunalkredit
• Externalization of services by concession to
  third part for a number of years (at least 5 or
  10) with the obligation to invest a certain
  amount

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• Infrastructure Projects
• Financing founds from ISPA and SAPARD more than
  250 millions euros per year
• rechnical Projects preparation of rehabilitation
  of Fundulea Fetesti railway
• rehabilitation of Baneasa Fundulea railway
• rehabilitation of Fundulea Fetesti railway
• the enlargement of DN5, Bucuresti Giurgiu
• construction of circle road Adunati Copaceni
• rehabilitation of Highway Bucuresti Cernavoda
• rehabilitation of DN6, Craiova Drobeta Turnu
  Severin
• construction of circle road to Sibiu, at highway
  standards
• rehabilitation of DN6, Drobeta Turnu Severin
  Lugoj
• fezability study for circle road Lugoj and
  infrastructure of access bridge over Danube at
  Calafat - Vidin
• technical assistance for rehalibitation of
  railway Ungaria - Simeria
• Financing found from Phare more than 60
  millions euro
• the construction of circle road Tecuci
• bridge reconstruction over Prut at Radauti Prut
  Lipcani
• ecological project for Danube and transport
  facilities

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Private Financing References Infrastructure
Projects

• Austrias No. 1 in public finance, Kommunalkredit
  Austria has been working in partnership with the
  public sector for many years.
• The Kommunalkredit Group operates on an
  international scale. Its activities are focused
  primarily on Austria and Switzerland as well as
  the countries of Central, Eastern and
  South-Eastern Europe.
• Traditionally, Kommunalkredit has always been a
  partner for Austrian local authorities and
  municipalities. The growing internationalization
  of its business, the enlargement of the European
  Union and the increasing demand for expertise in
  the development of public financing models have
  significantly changed and extended
  Kommunalkredits markets.
• The product portfolio extends far beyond the
  classic offer of loans and leasing facilities.
  As a sought-after partner in financial budget
  optimization, Kommunalkredit provides a whole
  range of products, comprising receivables
  purchasing, loan portfolio analyses as well as
  structured products, all tailor-made to the
  requirements of the individual client.
• The Kommunalkredit Group also cooperates
  successfully with the European Investment Bank
  (EIB) and the European Bank for Reconstruction
  and Development (EBRD).
• Contact Dexia Kommunalkredit Romania
• Roxana Lazar
• Chief Executive Officer
• Bucharest, 42 Calea Dorobantilor, 1st District
• Phone [phone]
• Fax [phone]
• roxana.lazar_at_dexia-kom.ro

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Private Financing References Infrastructure
Projects
Romanian Railways Ministry of Transport Project
Financing of rolling stock Railway
maintenance Closing 2006 Total size EUR
144,000,000 Term 12 years Structure Loan Functi
on Lender
Tirgu Mures Ivenio, Romania Project Speed
Baler Closing May 2006 Term 10 years Total
Size EUR 2,605,000 Structure Credit
Facility Function Lender
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Private Financing References Infrastructure
Projects
Bucharest Constanta LineRomanian Ministry of
Transport Project Rehabilitation of
railways Closing 2006 Total size EUR
100,000,000 Term 10 years Structure Loan Functio
n Lender
TAROM (National Romanian Airline)Romanian
Ministry of Transport Project Purchase of 2
aircrafts Closing 2006 Total size EUR
71,000,000 Term 13 years Structure Loan Function
Lender
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Private Financing References Infrastructure
Projects
City of Bucharest - 2nd District Project financin
g infrastructure works, extension of water
and sewage network Closing 2007 Total size
RON 242.600.000 Term 20 years Structure
Investment loan Function Lender
City of Iasi Project financing local
infrastructure projects Closing 2007 Total
size RON 200.000.000 Term 20
years Structure Bridge Loan Bond
Issues Function Lender
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Private Financing References Infrastructure
Projects
City of Bucharest-4th District Project financing
infrastructure works, extension of water and
sewage network Closing 2007 Total size RON
162.000.000 Term 18 years Structure Investment
loan Function Lender
Sibiu City and County Project Sibiu Airport
modernization Closing 2007 Total size RON
140.000.000 Term 25 years Structure Investment
loan Function Lender
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Private Financing References Infrastructure
Projects
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Private Financing from Volksbank Romania

• - CITADIN - company from Iasi, part of the
  Municipality for the acquisition of equipments
  for roads habilitation and contraction 1.3
  million euro
• Hidroconstructia finance for current activity
  11.2 million euros