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Document 52021PC0608

Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for Romania

COM/2021/608 final

Brussels, 27.9.2021

COM(2021) 608 final

2021/0309(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Romania

{SWD(2021) 276 final}


2021/0309 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for Romania

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 and in particular Article 20 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The COVID-19 outbreak has had a disruptive impact on the economy of Romania. In 2019, the gross domestic product (GDP per capita) of Romania was 36,8 % of the Union average. According to the Commission’s summer 2021 forecast, the real GDP of Romania declined only by 3,9 % in 2020, and is expected to increase by 3,3 % cumulatively in 2020 and 2021. Long standing issues with an impact on medium-term economic performance include risks arising from the deterioration of the current account and from the loss of competitiveness which could negatively feed back into the former, and an accelerating government debt. Red tape and the insufficient capacity of public authorities to deliver quality services, including digital services, negatively affect citizens and businesses, especially small and medium-sized enterprises (SMEs), while the delivery of major reforms and public investments is strongly linked to improving governance. At the same time, potential output and sustainable and inclusive growth are negatively affected by high rates of risk of poverty and social exclusion, which are some of the highest in the EU.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to Romania in the context of the European Semester. In particular, the Council recommended Romania to take all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery and pursue fiscal policies to put an end to the excessive deficit situation. Also in relation to public finances, the Council recommended strengthening tax compliance and tax collection, ensuring the sustainability of the public pension system and the long-term viability of the second pillar pension funds with comprehensive structural reforms and to avoid the implementation of permanent measures that would endanger fiscal sustainability. Moreover, the Council recommended to strengthen the resilience of the health system, including in the areas of health workers and medical products, and improve access and cost-efficiency of healthcare, including through the shift to outpatient care. Particularly relevant to social challenges were the recommendations to improve the quality and inclusiveness of education, in particular for Roma and other disadvantaged groups, improve skills by increasing the labour market relevance of vocational education and training and higher education, increase the coverage and quality of social services and complete the minimum inclusion income reform, as well as ensure objective minimum wage setting that is consistent with job creation and competitiveness. In addition, the Council recommended Romania to provide adequate income replacement and extend social protection measures and access to essential services for all. To tackle the COVID-19 crisis, Romania was recommended to mitigate the employment impact of the crisis by developing flexible working arrangements and activation measures and to strengthen skills and digital learning and ensure equal access to education. Furthermore, Romania was recommended to safeguard financial stability and the robustness of the banking sector, to ensure liquidity support to the economy benefitting businesses and households, particularly small and medium-sized enterprises and the self-employed and to front-load mature public investment projects and promote private investment to foster the economic recovery. It was recommended to focus the investments on the green and digital transition, in particular on sustainable transport, digital service infrastructure, clean and efficient production and use of energy and environmental infrastructure, taking into account regional disparities, including in the coal regions. The Council also recommended to improve the quality and effectiveness of public administration and the predictability of decision-making, including through an adequate involvement of social partners, as well as to strengthen the corporate governance of state-owned enterprises. Having assessed progress in the implementation of those country-specific recommendations at the time of submission of the recovery and resilience plan (RRP), the Commission finds that substantial progress has been achieved with respect to the country-specific recommendation to safeguard financial stability and the robustness of the banking sector and the recommendation on immediate fiscal policy response to effectively address the pandemic, sustain the economy and support the ensuing recovery. In addition, the recommendation to maintain adequate liquidity for SMEs and self-employed has been fully implemented.

(3)On 2 June 2021, the Commission published an in-depth review under Article 5 of Regulation (EU) No 1176/2011 of the European Parliament and of the Council 2 for Romania. The Commission’s analysis led it to conclude that Romania is experiencing macroeconomic imbalances, related in particular to risks of cost competitiveness losses, a deteriorating external position and a widening current account deficit, in a context of expansionary fiscal policy and an unpredictable business environment.

(4)On 31 May 2021 Romania submitted its national RRP to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. The submission followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. National ownership of the RRPs underpins their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission has assessed the relevance, effectiveness, efficiency and coherence of the RRP, in accordance with the assessment guidelines offset out in Annex V to that Regulation.

(5)The RRPs should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 (the 'Facility') and of the European Union Recovery Instrument set up by Council Regulation (EU) 2020/2094 3 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union's economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(6)The implementation of the Member States' RRPs will constitute a coordinated effort involving reforms and investments across the Union. Through coordinated and simultaneous implementation and the implementation of cross-border and multi-country projects, such reforms and investments will mutually reinforce each other and generate positive spillovers across the Union. Therefore, about one third of the impact of the Facility on Member States' growth and job creation will come from spillovers from other Member States.

Balanced response contributing to the six pillars

(7)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the RRP represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, considering the specific challenges faced by Romania and taking into account the financial contribution and the requested loan support.

(8)The plan follows a holistic approach to achieve recovery and increase potential growth, while enhancing socio-economic and institutional resilience. The plan contains mutually reinforcing and coherent reforms and investments that refer to policy areas of European relevance structured around the six pillars.

(9)The plan has a strong focus on the green transition pillar with energy and climate related measures, with flagship reforms on the phasing-out of coal and the decarbonisation of road transport. The reforms and investments are expected to significantly decarbonise the energy sector and unlock the potential for renewables deployment. The strong focus on energy efficiency of private and public buildings, digitalisation of road and rail transport and the deployment of electric charging infrastructures, climate change adaptation and circular economy, will also facilitate the green transition in all sectors of the economy. The plan also contributes to the digital transition. Measures contributing to digital objectives are present throughout the plan, across the different components and focus on the digitalisation of the public administration (including health, justice, environment, employment and social protection) and businesses, connectivity, cybersecurity and digital skills.

(10)Several components in the plan have the potential to foster smart and sustainable growth. The plan contains a series of measures, including through the use of new financial instruments and the creation of a National Development Bank that are expected to directly or indirectly support private investments, including for small and medium-sized enterprises (SMEs), increase the capacity of the country to attract investment and create new businesses and jobs. The plan also aims to reinforce fiscal sustainability through important reforms of the tax administration, tax framework, fiscal management and the pension system. The plan envisages to strengthen social and territorial cohesion through structural measures on the labour market and important reforms and investments targeting both urban and rural development, which are expected to reduce territorial disparities at regional, intra-regional and intra-county level.

(11)The proposed reforms and investments are expected to strengthen the overall resilience of the health system, including its digitalisation. Finally, measures in the plan aim to help the next generations mainly by addressing challenges in terms of quality, equity and infrastructure in the educational system. The upgrade of school and university infrastructure in urban and rural areas, the digitalisation of education and a system of grants to reduce the drop-out rate are the main measures to address these challenges.

Addressing all or a significant subset of challenges identified in country-specific recommendations

(12)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the RRP is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Romania, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester. The recommendations related to the immediate fiscal policy response to the pandemic can be considered to fall outside the scope of Romania’s RRP, notwithstanding the fact that Romania has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the general escape clause of the Stability and Growth Pact. The recommendations also referred to the need for Romania to pursue fiscal policies in line with the Council’s recommendation under Article 126(7) of the Treaty to end the excessive deficit situation. On 18 June 2021, the Council recommended to Romania to put an end to the excessive deficit situation by 2024 at the latest, with a deadline of 15 October 2021 for Romania to take effective action and to report on its consolidation strategy. 

(13)The plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Romania by the Council in the European Semester in 2019 and in 2020. Notably, reforms and investments included in the plan are expected to contribute in the areas of sustainability of public finances and pension system, healthcare, public administration, business environment, education, and green and digital transition.

(14)The full digitalisation of the tax administration and gradual phase out of excessive tax incentives, as well as an improved fiscal framework, will contribute to the sustainability of public finances. The plan also aims at ensuring the sustainability and fairness of the public pension system. Healthcare reforms, accompanied by digitalisation investments, are expected to improve access, cost-efficiency and resilience of healthcare.

(15)Evidence-based decision making, long-term planning and public consultations and measures aimed at improving the public procurement process, reinforcing the effectiveness and independence of the judicial system and fighting corruption will contribute to improving the quality and effectiveness of the public administration. Reforms of minimum wage setting, strengthening corporate governance of state-owned enterprises and social dialogue also address long-standing country-specific recommendations. The plan also aims to develop a unitary, inclusive and quality early-childhood education and care system accompanied by investments in childcare.

(16)This decision is without prejudice to the Commission Decision 6569 of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Romania to address specific benchmarks in the areas of judicial reform and the fight against corruption. The benchmarks in the Annex to that Decision are intended to ensure that Romania complies with the value of the rule of law, as set out in Article 2 TEU, and are binding on it. Romania is required to take the appropriate measures for the purposes of addressing those benchmarks, taking due account, under the principle of sincere cooperation laid down in Article 4(3) TEU, of the reports drawn up by the Commission on the basis of that Decision, and in particular the recommendations made in those reports.

(17)The plan promotes sustainable and digital investments and supports research and development activities. Reforms related to the coal phase-out, the establishment of a government cloud and the deployment of the electronic identity card contribute to supporting the twin green and digital transition.

(18)By addressing the aforementioned challenges, the plan is expected to also contribute to correcting the imbalances, as identified in recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 in 2020, that Romania is experiencing, in particular with regard to risks of cost competitiveness losses, a deteriorating external position and a widening current account deficit, in a context of expansionary fiscal policy and an unpredictable business environment.

Contribution to growth potential, job creation and economic, social and institutional resilience

(19)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the RRP is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of Romania, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(20)Simulations by the Commission services show that the RRP, together with the rest of measures of the European Union Recovery Instrument, has the potential to increase the GDP of Romania by 1,8 % to 2,9 % by 2026, not including the possible positive impact of structural reforms, which can be substantial.

(21)The implementation of social and educational reforms and investments are expected to tackle some of the long-standing vulnerabilities and structural deficiencies, stimulating growth. The plan includes measures to strengthen the public administration, support private investments, particularly for SMEs, and strengthen the business environment, including through reducing the administrative burden for firms.

(22)The plan’s reforms in the areas of education and the labour market are expected to support a stronger labour market, favouring growth. The flagship reforms on the coal phase-out and the decarbonisation of transport, and investments promoting the green and digital transition are expected to boost competitiveness and make the economy overall more sustainable.

(23)A series of measures are expected to contribute to social cohesion and to the European Pillar of Social Rights. Those include the expansion of the availability of good quality early childhood education and care, the delivery of the minimum inclusion income reform, health reforms and the introduction of voucher system, which has the potential to increase the labour market participation of inactive people and access to social services for newly employed workers.

(24)Social resilience is expected to improve as a result of the educational reforms and investments included in the plan. Having a well-skilled labour force and reducing early school leaving should make the economy better placed to withstand future shocks and the population more adaptable to changing economic patterns.

(25)Poverty and income inequality deepened during the pandemic outbreak, and regional disparities persist, with vulnerable groups being more affected. The plan aims to contribute to the implementation of the European Pillar of Social Rights, through the promotion of policies for children and youth. Reforms and investments are expected to respond to structural problems in areas where the pandemic crisis has taken its toll, with a focus on health, education, and the business environment. In addition, investments in basic transport infrastructure in currently poorly connected regions of the country and digital connectivity in rural areas will be key to bringing the country closer together.

Do no significant harm

(26)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the RRP is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the RRP does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 4 (the principle of 'do no significant harm').

(27)In accordance with the technical guidance provided in the Commission Notice entitled 'Technical guidance on the application of "do no significant harm" under the Recovery and Resilience Facility Regulation' 5 Romania has provided evidence and assurances that the measures for the implementation of reforms and investment projects included in the plan are expected not lead to significant harm to any of the six environmental objectives, namely climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. Where needed, Romania has proposed the implementation of mitigating measures to avoid significant harm, which should be ensured through relevant milestones.

(28)Particular attention has been paid to measures with an impact on environmental objectives that warrants close scrutiny. In particular, road investments are accompanied by a reform on the decarbonisation of transport, which covers green taxation measures, incentives for zero-emission vehicles, scrapping of polluting vehicles, road safety measures and a very significant increase of electric charging stations. The plan also demonstrates that the construction of the distribution network enabling the transport of green hydrogen in the Oltenia region is future-proof, as it will carry 100 % renewable hydrogen and/or other renewable gases in 2030, starting with at least 20 % of renewable hydrogen when commissioned by 30 June 2026. These conditions are verified by intermediate milestones at the time of the award of the contract. Do no significant harm (DNSH) compliance of investments in gas-fired Combined Heat and Power enabled for the use of renewables and low-carbon gases is ensured through the adoption and implementation of a National Hydrogen Strategy and Action Plan and the installation of renewable hydrogen production capacities, the closure of coal and lignite power and heat generation facilities, a significant amount of additional renewables capacity, and concrete reforms and investments to increase the share of renewables. Waste resulting from renovation is expected be treated in accordance with circular economy principles. Measures in waste and recycling treatment should not contain investments in incineration or mechanical biological treatment in compliance with the do no significant harm principle. Measures aimed at the replacement of the fleet of vehicles ensure that only clean vehicles should be eligible for funding. Finally, investments in water management are not expected to lead to the deterioration of the ecological status of the affected water bodies, by taking into account the findings and conditions set by the comprehensive and cumulative Environmental Impact Assessment to be carried out for the purpose of these investments.

Contribution to the green transition including biodiversity

(29)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 41 % of the RRP's total allocation calculated in accordance with the methodology set out in Annex VI of that Regulation. In accordance with Article 17 of that Regulation, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(30)The RRP includes long-lasting reforms and investments contributing to the green transition. The plan includes a reform on the phase out of coal and lignite power production by 2032, which is crucial for the decarbonisation of the energy sector and to unlock the potential for renewables deployment. Reforms promoting sustainable transport include the decarbonisation of road transport, green taxation, incentives for zero-emission vehicles, modal shift to railways and water transport, and measures to promote road safety. The plan has also a strong focus on energy efficiency of private and public buildings. The introduction of green budgetary planning, digitalisation of road and rail transport and the deployment of electric charging infrastructures, climate change adaptation and circular economy, is expected to also facilitate the green transition in all sectors of the economy.

(31)With several reforms and investments in the forestry sector, such as the adoption of the National Forest Strategy and the ecological reconstruction of habitats and the conservation of species, the plan is also expected to contribute to biodiversity conservation and restoration. The implementation of reforms and investments on resource efficiency, material reuse and reducing waste aim to ensure Romania’s transition to a circular economy by 2030.

Contribution to the digital transition

(32)In accordance with Article 19(3), point (f) of Annex V, criterion 2.6, to Regulation (EU) 2021/241, the RRP contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 20,5 % of the RRP’s total allocation calculated in accordance with the methodology set out in the Annex VII to Regulation (EU) 2021/241.

(33)The plan is expected to address digitalisation challenges related to the public administration, proposing a comprehensive package of reforms and investments in order to provide secure, interoperable, cost-efficient and fast user-centred services for citizens and businesses. The plan includes a new Information Systems Interoperability Law which is expected to detail the uniform set of standards and rules that public entities are supposed to apply for the development of applications in a secure and sustainable environment, a Government Cloud Act setting out the responsibilities and tasks regarding the design, implementation, development and management of the cloud infrastructure, technologies and services, a cybersecurity strategy and a reform implementing the recommendations of the Common Union Toolbox for Connectivity as well as the 5G security law, laying the ground for the 5G deployment. Reforms are underpinned by a broad range of key investments, such as the development of the governmental cloud, the digitalisation of health, judiciary, environment, employment and social protection, public procurement, non-governmental organisations, connectivity for white areas, ensuring cybersecurity for different structures and increasing digital skills both for civil servants and the population at large. The deployment of the electronic identity card is expected to facilitate the digital interaction between public/private entities and citizens. Moreover, with the inclusion of the definition of new digital occupations in the Classifications of Occupations Code, the labour market is expected to align to the latest developments in the digital sector.

(34)The plan also supports the digitalisation of road and rail transport and facilitates taxpayers’ compliance through the development of digital services, updating systems and applications of the tax and customs authorities. The business sector is expected to benefit from significant investments aiming to accelerate the digitalisation of both SMEs and large companies with a focus on the development and adoption of advanced technologies (such as blockchain, quantum, cloud computing, artificial intelligence). An underpinning reform is expected to streamline, simplify and fully digitalise business related regulatory requirements (such as setting up a company, exit from the market/closure of a business as well as for regulatory requirements for reporting of labour market obligations for companies). As regards education, reforms include standards for ensuring the quality of online educational activities and the alignment of the educational system to the DigComp European framework for digital competences for students. The corresponding investments tackle the development of thematic training courses, for digital literacy and digital pedagogy competences in particular for teachers in rural areas and other disadvantaged environment, grants for informatics laboratories and smart hubs, development of open educational resources and schemes for digitalisation of universities.

(35)All the plan’s components include measures with direct contribution to the digital transformation or addressing related challenges. The key components are the digital transformation, followed by education, sustainable transport and business support and R&D&I. The measures contributing to the digital transformation are expected to improve the effectiveness of the public administration, lowering the administrative burdens, increasing the competitiveness of the businesses and equip parts of the population (notably students, teachers and civil servants with basic and advanced digital skills), enabling a synergetic effect for the economy as a whole. The digital dimension is strengthened with a cross-border dimension, as Romania is expected to participate in a multi-country project on low power processors and semiconductor chips planned as an Important Project of Common European Interest.

Lasting impact

(36)In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241, the RRP is expected to have a lasting impact on Romania to a large extent (Rating A).

(37)The reforms proposed in the plan are expected to contribute to Romania’s capacity to deliver long-term results and structural change. The reform on recruitment, wages and career progression in the public sector is expected to attract skilled and professional human resources. An independent review and the adoption of the recommendations that follow should make the tax system fairer and more efficient. The pension system reform should make the system fairer and more sustainable. The reform of the energy sector should contribute to decarbonisation of energy production. A broader use of green taxation is expected to incentivise citizens and companies to adopt a more environmentally sustainable behaviour, while making the taxation system fairer towards non-pollutants. The establishment of metropolitan areas and rural consortia is expected to broaden the policy tools that neighbouring municipalities have at their disposal to face cross-border issues – such as traffic congestion, air pollution, water management and housing policy. Similarly, legal provisions will encourage the voluntary merging of research institutions, thus enhancing the research and innovation capacity of the country.

(38)The plan contains investments expected to have a lasting impact, supporting the green and digital transition of the economy. The digital-related measures in the plan are designed to increase the level of digitalisation of relevant institutions, which is expected to have a lasting impact on the quality of services, the business environment and the optimal use of government data. This concerns essential areas such as the judicial system, social security, the health system, the cybersecurity framework or platforms to improve interactions between public administrations and citizens or businesses. The plan further contributes to the good functioning of the public administration in Romania. Positive labour market outcomes are expected to occur as a result of complementarities between the introduction of the voucher scheme for domestic workers, the improvement of the digital services provided by the employment services, and the deployment of programs for the development of digital skills. Public healthcare quality and access to healthcare is expected to increase as a result of the implementation of a performance-based disbursement system for healthcare providers, improved health workforce management and investments in healthcare infrastructure. With the establishment of the task-force to implement and monitor digital transformation reforms and investments, civil servants should develop specific digital skills, thus enabling continuous improvements in the delivery of quality public services.

(39)The lasting impact of the plan can also be enhanced through synergies between the plan and other programmes, including those financed by cohesion policy funds, in particular by addressing in a substantive manner the deeply rooted territorial challenges and promoting a balanced development.

Monitoring and implementation

(40)In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation (EU) 2021/241, the arrangements proposed in the RRP are adequate (Rating A) to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators.

(41)A multi-level governance is envisaged for the implementation and monitoring of the RRP. At central level, the coordination is ensured by the Inter-ministerial Committee for the Coordination of the recovery and resilience plan, responsible for examining progress in the implementation of the plan, in close cooperation with the Ministry of Investment and European Projects (MIPE). MIPE is appointed as the national coordinator for the preparation, negotiation and approval of the plan, assisted by the Ministry of Public Finances (for tasks related to signing the loan agreement and the financing agreement). A specialised structured within the MIPE shall be established for this task. The implementation of the RRP shall be ensured by line ministries and their subordinated structures, through the conclusion of financing agreements with MIPE. The contracts shall comprise provisions related to the monitoring of the investments and reforms, financial planning execution as well as reporting obligations. The plan also envisages that an independent audit body will be responsible for the implementation of audit and control. This body is the same audit authority as the one used for the European Structural and Investment Funds and is independent from the coordination body and institutions responsible for the implementation of the reforms and investments. The strengthening of administrative capacity, including through the recruitment of additional human resources shall be enshrined in a legal act, with the aim to ensure a timely and effective implementation of the plan’s measures. The governance model provides for the assignment of clear responsibilities for the implementation of the plan, the monitoring of progress and reporting. The milestones and targets of the Romanian plan are clear and realistic, and adequately reflect the investments and reforms envisaged in the plan. The indicators are relevant, acceptable and sufficiently robust. Milestones and targets are also relevant for measures already completed which are eligible under Article 17 (2) of Regulation (EU) 2021/241. The satisfactory fulfilment of these milestones and targets over time is required to justify a disbursement request.

(42)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with Article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council 6 to assist Member States in the implementation of their RRPs.

Costing

(43)In accordance with Article 19(3), point (i) and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the RRP on the amount of the estimated total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(44)The information and evidence on estimated total costs presented is, for the most part, detailed and clear for a majority of measures. In most cases, Romania provided information either on actual or similar past investment projects, or on comparative cost data for the main costs drivers that allow substantiating most cost estimates. For most measures, the information on estimated total costs includes clear supporting evidence or relevant references justifying the reference unit costs applied. For certain measures, further information presenting more detailed estimations and justifications could have increased the level of assurance that costs are reasonable and plausible. Since, for those cost estimates, the methodology used is not sufficiently well explained and the link between the justification and the cost itself is at times not fully clear the rating for the costing assessment criterion is medium. Romania provided sufficient information and evidence that the amount of the estimated total costs of the recovery and resilience plan to be financed under the Facility is not covered by existing or planned Union financing. Finally, the estimated total costs of the RRP is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

Protection of the financial interests of the Union

(45)In accordance with Article 19(3), point (j), of Annex V, criterion 2.10, to Regulation (EU) 2021/241, the arrangements proposed in the RRP are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding under that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with Union law, including for preventing, detecting and correcting corruption, fraud and conflicts of interest, and for protecting the Union budget in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council 7 .

(46)The internal control system described in the RRP is based on robust processes and structures and clearly identifies actors and their roles and responsibilities for the performance of the internal control tasks. The internal control system and other relevant arrangements, including the collection and publication of data on final recipients are expected to prevent, detect and correct corruption, fraud, conflicts of interest when using the funds under Regulation (EU) 2021/241 and to avoid double funding under that Regulation and other Union programmes. A repository system for monitoring of the implementation of the Facility is to be put in place and operational by the time of the first payment request. A milestone should ensure that the system includes, as a minimum, the following functionalities: (a) collection of data and monitoring of the achievement of milestones and targets; and (b) collection, storing and ensuring access to the data required by Article 22(2) point (d)(i) to (iii) of the Regulation.

(47)Specific measures are to be implemented to check compliance with the rules relating to public procurement, to prevent corruption and to protect financial interests. The Audit Authority from the Court of Auditors based its audit approach on a system strategy covering both the system in place for the reporting of the milestones and targets, as well as the internal control system for the prevention, detection and correction of fraud, conflict of interest, corruption and double financing. The plan provides information on the administrative capacity of the bodies which will monitor, control and implement the plan in Romania, as well as those bodies that shall perform audit activities. It also gives information on the legal mandate of the various bodies. The approval of a complete legal mandate for the coordination body and the Ministry of Public Finance, including the exact activities to be performed by the audit body, is expected to occur only after the approval of the plan. Therefore, the entry into force of the Government Emergency Ordinance on the financial, implementation, control and audit mechanism is introduced as a milestone to be fulfilled before the submission of the first payment request.

Coherence of the RRP

(48)In accordance with Article 19(3), point (k), of and Annex V, criterion 2.11, to Regulation (EU) 2021/241, the RRP includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(49)The plan is structured around six coherent pillars supporting the stimulation of the recovery of the Romanian economy, the contribution to its green and digital transition and the increase in its resilience on the path towards a more sustainable and inclusive growth. Each pillar is built around components including consistent packages of mutually reinforcing and complementary reforms and investments. All pillars pursue complementary and coherent objectives. The plan does not present inconsistencies or contradictions between pillars or components. The large investments in road infrastructures are accompanied by flanking measures to decarbonise road transport and are therefore coherent with the objectives of the Green transition pillar. Similarly, investments in gas infrastructures and power production accompany the transition towards a decarbonised energy sector, in the context of the reform on the coal phase-out. The need for establishing systematic complementarities with cohesion policy funding is evident and examples are presented in the components. Demarcation lines are sufficiently developed and should also be taken into account for the finalisation of the partnership agreement and cohesion policy programmes.

Equality

(50)The RRP contains a series of measures expected to contribute to addressing the country’s challenges in the area of gender equality and equal opportunities for all. These include measures addressing the needs of people with disabilities, including in relation to accessibility to transport, buildings and digital public services. On gender equality, the plan includes measures aimed at equalising the retirement age over time, as well as minimum threshold for women’s participation in training programmes of 50% for digital skills development programmes. The plan also contains targets to stimulate the participation of vulnerable people (including persons with disabilities, older persons as well as Roma or other minorities) in the labour market.

Security self-assessment

(51)In accordance with Article 18(4), point (g) to Regulation (EU) 2021/241, the plan includes a security-self assessment for investments related to government cloud and 5G networks. For the government cloud, Romania lists risks related to governance, service delivery strategy, architecture implementation, infrastructure security, access control and identity management, information and data management, IT operations, management of technology providers, and sustainability, including possible measures to mitigate the risks. As regards connectivity measures, in particular for the use of 5G networks, risk scenarios are related to insufficient security measures, 5G supply chain, risk scenarios related to modus operandi of key threat actors, risks in relation to interdependencies between 5G networks and other critical systems, end-user risk scenarios of devices. Mitigation measures include the development of a national cybersecurity regulatory framework and a defence and cybersecurity act, among others. The plan also includes reforms implementing the Common Union Toolbox for Connectivity and the entry into force of the 5G security law.

Cross-border and multi-country projects

(52)The RRP includes investments along the Trans-European Transport (TEN-T) corridors. In addition, the development of at least 315 km of the European Rail Transport Management System is expected to allow the interoperability with the rail systems of other Member States. The plan also envisages to support the participation of Romanian undertakings in the multi-country project on Low Power Processors and Semiconductor Chips expected to be implemented mainly through participation or association to a planned Important Project of Common European Interest.

Consultation process

(53)The RRP describes that Romania has consulted a wide range of stakeholders, including regional and local authorities, civil society organisations, business community and other relevant stakeholders. The Romanian government organised 12 public consultation events during February 2021, as well as 20 inter-ministerial meetings in order to prioritise the investments and reforms to be included in the RRP. Following the stakeholder and inter-ministerial consultation meetings, the draft plan was published for public consultation and briefly presented to the Parliament before being adopted by the Government and subsequently submitted to the Commission.

(54)To ensure ownership by the relevant actors, it is crucial to involve all regional and local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan.

Positive assessment

(55)Following the positive assessment of the Commission concerning the Romanian RRP with the finding that the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the RRP, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the RRP in the form of non-repayable financial and loan support.

Financial contribution

(56)The estimated total cost of the RRP of Romania is EUR 29 181 842 750. As the RRP satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the plan is lower than the maximum financial contribution available for Romania, the financial contribution allocated for Romania's recovery and resilience plan should be equal to the amount of the estimated total costs of the plan for Romania.

(57)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for Romania is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for Romania not exceeding the maximum financial contribution referred to in Article 11(1), point (a), of that Regulation should be made available now for a legal commitment by 31 December 2022. Where necessary following the update of the maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution, calculated in accordance with Article 11(2) of that Regulation, without undue delay.

(58)Furthermore, in order to support additional reforms and investments, Romania has requested loan support. The maximum volume of the loan requested by Romania is less than 6,8 % of its 2019 gross national income in current prices. The amount of the estimated total costs of the plan is less than the combined financial contribution available for Romania and the requested loan support.

(59)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053 8 . The support should be paid in instalments once Romania has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP.

(60)Romania has requested pre-financing of 13 % of the financial contribution and of 13 % of the loan. That amount should be made available to Romania subject to the entry into force of, and in accordance with, the agreement provided for in Article 23(1) of Regulation (EU) 2021/241 (the 'financing agreement') and the loan agreement provided for in Article 15(2) of that Regulation (the ‘loan agreement’).

(61)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any Union programme other than the Facility or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1
Approval of the assessment of the RRP

The assessment of the RRP of Romania on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets and the additional milestones and targets related to the payment of the loan, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 2
Financial contribution

1.The Union shall make available to Romania a financial contribution in the form of non-repayable support amounting to EU14 239 689 750. An amount of EUR 10 211 538 399 shall be available to be legally committed by 31 December 2022. 9 Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 results in an updated maximum financial contribution for Romania that is equal to or more than EU14 239 689 750, a further amount of EUR 4 028 151 351 shall be available to be legally committed from 1 January 2023 until 31 December 2023. If the update provided for in Article 11(2) of Regulation 2021/241 results in an updated maximum financial contribution for Romania that is less than EU14 239 689 750, the difference between the updated maximum financial contribution and the amount of EUR 10 211 538 399 shall be available to be legally committed in accordance with the procedure set out in Article 20(8) of Regulation (EU)2021/241 from 1 January 2023 until 31 December 2023.

2.The Union financial contribution shall be made available by the Commission to Romania in instalments in accordance with the Annex to this Decision. An amount of EUR 1 851 159 668 shall be made available as a pre-financing payment, equal to 13 % of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The pre-financing shall be released subject to the entry into force of, and in accordance with the financing agreement. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

4.The release of instalments in accordance with the financing agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Romania has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the RRP. In order to be eligible for payment, Romania shall complete the milestones and targets no later than 31 August 2026, subject to the entry into force of the legal commitments referred to in paragraph 1.

Article 3
Loan support

1.The Union shall make available to Romania a loan amounting to a maximum of EUR 14 942 153 000.

2.The loan support shall be made available by the Commission to Romania in instalments in accordance with the Annex to this Decision. An amount of EUR 1 942 479 890 shall be made available as a pre-financing payment, equal to 13 % of the loan. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The pre-financing shall be released subject to the entry into force and in accordance with the loan agreement. Pre-financing shall be cleared by being proportionally deducted against the payment of the instalments.

4.The release of instalments in accordance with the Loan Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that Romania has satisfactorily fulfilled the additional milestones and targets covered by the loan and identified in relation to the implementation of the RRP. In order to be eligible for payment, Romania shall complete the additional milestones and targets no later than 31 August 2026.

Article 4
Addressee

This Decision is addressed to Romania.

Done at Brussels,

   For the Council

   The President

(1)    OJ L 57, 18.2.2021, p. 17-75.
(2)    Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).
(3)    Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I , 22.12.2020, p. 23–27)
(4)    Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
(5)    OJ C 58, 18.2.2021, p. 1.
(6)    Regulation (EU) 2021/240 of the European Parliament and of the Council of 10 February 2021 establishing a Technical Support Instrument (OJ L 57, 18.2.2021, p. 1).
(7)    Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 I, 22.12.2020, p. 1).
(8)    OJ L 424, 15.12.2020, p. 1.
(9)    This amount corresponds to the financial allocation after deduction of the Romania’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.
Top

Brussels, 27.9.2021

COM(2021) 608 final

ANNEX

to the

Proposal for a Council Implementing Decision

on the approval of the assessment of the recovery and resilience plan for Romania

{SWD(2021) 276 final}


ANNEX

1.SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1.1.Description of Reforms and Investments

A.COMPONENT 1: Water management

The objective of the component is to ensure sustainable water provision for a safe future of people, the environment and the economy. In particular, the component aims to: (1) increase public access, especially in rural areas, to public water and sanitation services in line with the requirements of European Union legislation and make it accessible to all social groups; (2) increase the safety of existing accumulations; (3) strengthen administrative and response capacity of National Water Administration (ANAR) in emergency situations in particular linked to water management infrastructure; (4) improve the accuracy of forecasting weather warnings and warning systems in order to reduce the number of deaths and injuries caused by extreme weather events.

The component is comprised of two reforms and seven investments.

The measures included in the component are expected to address some challenges highlighted by the country-specific recommendation to focus investment on the green and digital transition, in particular on environmental infrastructure among others (country-specific recommendation 4, 2019 and country-specific recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

A.1.    Description of the reforms and investments for the loan

Reform 1. Strengthening the regulatory framework for the sustainable management of the water and wastewater sector and accelerating public access to quality services under European directives

The objective of this reform is to improve the capacity of regional water infrastructure operators, and to improve the quality and efficiency of cooperation between them and local authorities/inter-community development associations (IDAs), water and channel infrastructure owners. To attain this, a number of legislative and regulatory changes shall be made:

1) Amendments to the Law No 241/2006 on water supply and sewerage shall be made to enable the following:

-Approval of the tariff strategy of the regional water and sewerage operator by the general meeting of the Intercommunal Development Associations (IDAs), based on the special mandate received from the local administrative units. Through this change, the time needed for the approval of the tariff strategy shall be reduced significantly which shall enable the extension of the water and wastewater service infrastructure.

-Oblige local public administration authorities to keep records of natural and legal persons that do not discharge waste water into the public sewerage network and send the list of such persons to the National Environmental Guard annually.

-Oblige users to connect to existing public sewerage systems if they do not have an appropriate individual collection and treatment system.

-Allow to organise, where appropriate, the provision of the water service only, on the condition that the collection of wastewater is done through individual collection and treatment systems that shall ensure the same level of environmental protection as centralised collection and treatment systems.

-Ensure the exceptional nature of adequate individual systems in the sense that these systems address situations where centralised systems are not technically and economically feasible.

-Prohibit the direct discharge of untreated wastewater from appropriate individual systems into the environment.

-Develop criteria for authorization, construction, registration/record, operation and maintenance of appropriate individual systems.

The implementation of the above mentioned reform shall be completed by 31 December 2021.

2) Entry into force of the law approving the national programme First Connection to Water and Sanitation, which shall support families and single people on low incomes (who have average monthly net cash incomes below the gross national minimum wage guaranteed per family member) to pay the costs incurred for connection to the water supply and sewerage system. The implementation of the reform shall be completed by 31 March 2022.

3) Signature of implementation agreements between the Environmental Fund Administration and the local authorities participating in the First Connection to Water and Sanitation Programme. The agreements shall be completed by 31 December 2022.

Reform. 2 Reconfiguration of the current economic mechanism of the National Water Administration (ANAR) in order to ensure the modernisation and maintenance of the national water management system and proper implementation of the Water Framework Directive and Floods Directive

The objective of the reform is to ensure the modernisation and maintenance of the national water management system and proper implementation of Directive 2000/60/EC (Water Framework Directive) and Directive 2007/60/EC) (Floods Directive) and to ensure the most efficient cost management at ANAR level.

To attain this, a new economic mechanism enabling ANAR to best meet consumer needs, including by improving the connection between tasks and staff structure, shall be made operational by carrying out the necessary studies for the 11 river basins in Romania, covering: (i) the economic importance of the sustainable water management and use; (ii) trends in the evolution of the water needs and the volumes of water collected at river basin / area level; and (iii) medium and long-term macroeconomic indicators and the optimal cost recovery mechanism for the water volumes provided by ANAR to water resource users in accordance with the ecological flow requirements. The studies shall be completed by 30 June 2022.

On the basis of those studies, legislative amendments to Water Law No 107/1996 shall be adopted to regulate the new economic mechanism for water resources in Romania.

The implementation of the reform shall be completed by 30 June 2024.

Reform 1 shall be accompanied by three investments – Investments 1, 2 and 3.



Investment 1. Expansion of water and sewerage systems in agglomerations of more than 2 000 population equivalent, prioritised by the Accelerated Plan for Compliance with European Directives

The objective of this investment is to extend the coverage of water and wastewater collection systems in municipalities of more than 2 000 population equivalent, prioritised by the Plan for Accelerating Compliance with the European Directives.

As a result of the investment, a total of 1 600km of water distribution networks and at least 2 500km of sewage network shall be built and made operational in total in agglomerations of more than 2 000 population equivalents (l.e), prioritised by the Accelerated Plan for Compliance with the European Directives and in compliance with the amendments to the Law No 241/2006 adopted under Reform 1.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent which prevent the achievement of good status of water bodies and/or affect natural protected areas

The objective of the investment is to build individual systems or other appropriate (common) systems for waste water collection in agglomerations below 2000 population equivalent.

As a result of the investment, at least 12 900 in total individual or other appropriate systems and at least 400km in total of sewage network shall be built and made operational. The investment shall commence only after the approval of the legislative amendments on appropriate individual systems (Reform 1) and the entry into force of the legislative act approving the National Programme for the first connection to water and sewerage networks (Reform 1) and shall be compliant with the amendments to the Law No 241/2006 adopted under Reform 1.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3. Supporting the connection of the low-income population to existing water and sewerage networks

The objective of the investment is to provide support to families and single people with low incomes (who have average monthly net cash incomes below the gross national minimum wage guaranteed per family member) to cover the costs of connection to the public water supply and sanitation system.

As a result of the investment, at least 88 400 additional households shall be connected to water and sewerage through the National Programme First Connection to Water and Sanitation, adopted under Reform 1. The investment shall be implemented by local authorities through the public water and sewerage operators managing the planned building systems. The investment shall finance costs incurred and justified in accordance with legal provisions by the contracting authorities without exceeding the level of EUR 2 000 per connected household.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4. Adaptation to climate change by automation and digitalisation of water disposal and storage equipment of existing accumulations to ensure ecological flow and increase the security of water supply to the population and reduce the risk to floods

The investment consists of two sub-investments: (1) rehabilitation of existing defence lines in accordance with the Floods Directive and the National Strategy for Flood Risk Management; and (2) rehabilitation of existing accumulations that are at risk of collapsing.

The objective of the first sub-investment is to renovate existing flood defence lines. As a result of this sub-investment, at least 510 km in total of flood defence lines shall be rehabilitated in line with the Floods Directive and the National Strategy for Flood Risk Management. Rehabilitation works shall prioritise areas on the basis of prevention and protection plans and flood mitigation, and shall consist of fillings from local material extracted from the dyke-riverbank areas, followed by grass coverings.

The implementation of the sub-investment shall be completed by 31 March 2026.

The objective of the second sub-investment is to repair and refurbish damaged dams and flood prevention polders on existing flood defence lines in order to restore and maintain their capacity to prevent flooding. As regards the dams, subject to the outcome of the feasibility studies that will be carried out for 30 dams, the sub-investment shall be implemented through the adoption, by 30 June 2023, of the project designs for the rehabilitation of 20 existing dams, for which there are no feasible alternatives to reduce flood risks. On the basis of these project designs, 20 existing dams, for which revised feasibility studies concluded that there are no feasible alternatives to reduce flood risks, shall be rehabilitated. The rehabilitation shall be done in accordance with the requirements set out in the feasibility studies and project designs, and fully respect the results and conditions set by the comprehensive and cumulative EIA that shall have been completed in accordance with Directive 2011/92/EU (EIA Directive), as well as relevant assessments in the context of Directive 2000/60/EC (Water Framework Directive) and the Appropriate Assessment under Directive 92/43/EEC (Habitats Directive), including the implementation of required mitigation measures. Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive shall be achieved and evidenced by latest relevant supporting data, and any deterioration shall be avoided. As regards the flood prevention polders, as a result of this investment, 20 flood prevention polders on existing flood defence lines shall be rehabilitated or newly-installed.

The implementation of the sub-investment shall be completed by 31 March 2026.

Investment 5. Appropriate endowment of river basin administrations for flood monitoring, prevention and emergency response

The objective of the investment is to equip ANAR/basin administrations with the necessary machinery and equipment for intervention to mitigate impacts of extreme weather events.

As a result of the investment, 11 River Basin Administrations shall be equipped with machinery for rough terrain access and intervention, amphibious access and transport of mobile sand bags/dikes in hard-to-reach areas; drones equipped with LIDAR/Flir/photogrammetry sensors; geo-electro resistive/geo radar technologies of dyke bodies, and hardware and software infrastructure for data analysis and data storage collected by the above-mentioned equipment, in order to support and improve flood prevention and response to emergency situations.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, vehicles to be purchased shall have specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, that are lower than 50gCO2/km.

The implementation of the investment shall be completed by 30 September 2023.



Investment 6. Implementation of the water cadastre

The objective of the investment is to ensure rapid delimitation of minor watercourses, using techniques for interpreting and processing semi-automatic satellite information available at global and European level for approximately 70% of the length of the cadastral water courses, the determination by semi-automatic methods of hydro-morphological active areas (erosion/sedimentation) to support the implementation of Water Framework Directive, and of critical points of the longitudinal infrastructures of water courses (dams, shore-side equipment) in order to prioritise the implementation of the Floods Directive.

The water cadastre shall be developed and operationalised by (i) procuring Digital Terrain Model (DTM)/Digital Surface Model (DSM) at national level, based on satellite information which shall be made available to all State authorities; (ii) software development for determination of river bed modification (erosion sedimentation process), gravel extraction monitoring and land slide potential in the areas of dam-lake ensemble; (iii) semiautomatic digitisation and delineation of minor river beds based on DTM/DSM orthophoto and satellite imagery.

The implementation of the investment shall be completed 31 December 2025.

Investment 7. Extension of the national observation network of the National Integrated Meteorological System (SIMIN)

The objective of this investment is to enhance the capacity to forecast severe weather phenomena (nowcasting) and hence to reduce or prevent their adverse impacts. This shall be attained through the extension of the national network of observations under the National Integrated Meteorological System (SIMIN) with automatic and autonomous surface meteorological stations and agro-meteorological stations.

As a result of this investment, 300 automatic and autonomous surface meteorological stations and 100 agro-meteorological stations shall be acquired and made operational by 31 December 2025. In addition, information and communication technology for the integration of the additional meteorological stations in the National Integrated Meteorological System (SIMIN) shall be made operational by 30 June 2026.

The implementation of the investment shall be completed by 30 June 2026.

 

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq. Num.

Related Measure (Reform or Investment)

Milestone/Target

Name

Qualitative

indicators
(for milestones)

Quantitative

indicators
(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit

of

measure

Base

line

Goal

Quarter

Year

1

Reform 1. Strengthening the regulatory framework for the sustainable management of the water and wastewater sector and accelerating public access to quality services under European directives

Milestone

Entry into force of the amendments to the Law No 241/2006 on water supply and sewerage

Provision in the law indicating the entry into force of the law

Q4

2021

Entry into force of the amendments to the Law No 241/2006 on water supply and sewerage which shall:

-Enable approval of the tariff strategy of the regional water and sewerage operator by the general meeting of the Intercommunal Development Associations (IDAs), on the basis of the special mandate received from the local administrative units. Through this change, the time needed for the approval of the tariff strategy shall be reduced significantly which shall enable the extension of the water and wastewater service infrastructure.

-Oblige local public administration authorities to keep records of natural and legal persons that do not discharge waste water into the public sewerage network and send the list of such persons to the National Environmental Guard annually.

-Oblige users to connect to existing public sewerage systems if they do not have an appropriate individual collection and treatment system.

-Allow to organise, where appropriate, the provision of the water service only, on the condition that the collection of wastewater is done through individual collection and treatment systems that shall ensure the same level of environmental protection as centralised collection and treatment systems.

- Ensure the exceptional nature of adequate individual systems, which shall only address situations where centralised systems are not technically and economically feasible.

-Prohibit the direct discharge of untreated wastewater from appropriate individual systems into the environment.

-Develop criteria for authorization, construction, registration/record, operation and maintenance of appropriate individual systems.

2

Reform 1. Strengthening the regulatory framework for sustainable management of water and waste water sector and accelerating people’s access to quality services under European directives

Milestone

Entry into force of the law approving the national programme First Connection to Water and Sanitation

Provision in the law indicating the entry into force of the law for the First Connection to Water and Sanitation programme

Q1

2022

Entry into force of the law approving the national programme First Connection to Water and Sanitation, which shall support families and single people on low incomes (who have average monthly net cash income below the gross national minimum wage guaranteed per family member) to pay the costs incurred for connection to the water supply and sewerage system.

Low income households shall be identified by the local authorities. The First Connection Programme shall then finance, through the Environmental Fund Administration, the connection works for the identified families contracted by the local authorities.

3

Reform 1. Strengthening the regulatory framework for the sustainable management of the water and waste water sector and accelerating people’s access to quality services under European directives

Milestone

Implementation agreements signed with the local authorities participating in the First Connection to Water and Sanitation Programme

Implementation agreements signed with the local authorities participating in the First Connection to Water and Sanitation Programme

Q4

2022

The Environmental Fund Administration shall sign the implementation agreements with the local authorities participating in the First Connection to Water and Sanitation Programme.

4

Reform 2. Reconfiguration of ANAR’s current economic mechanism to ensure the modernisation and maintenance of the national water management system and the proper implementation of the Water Framework Directive and the Floods Directive

Milestone

Entry into force of the law introducing amendments to Water Law No 107/1996

Provision in the law indicating the entry into force of a legislative act for amendments to Water Law no 107/1996

 

 

 

Q3

2024

On the basis of the studies carried out, legislative amendments to Water Law No 107/1996 shall be adopted and enter into force to regulate the new economic mechanism for water resources in Romania.

The new mechanism shall improve the correlation between ANAR’s (Romanian Waters Administration) regulated water revenue system and the costs for each category of water users to which ANAR provides the necessary water volumes, in accordance with the ecological flow requirements.

5

Investment 1. Expansion of water and sewerage systems in agglomerations of more than 2 000 population equivalent, prioritised by the Accelerated Plan for Compliance with European Directives

Target

Built and operational water distribution networks

 

Kilometres (km)

 0

 400

 Q3

 2024

At least 400km of water distribution networks shall be built and made operational in the municipalities located in agglomerations prioritised by the Accelerated Plan for Compliance with European Directives and in compliance with the amendments to the Law No 241/2006 set out in Milestone 1.

6

Investment 1. Expansion of water and sewerage systems in agglomerations of more than 2 000 population equivalent, prioritised by the Accelerated Plan for Compliance with European Directives

Target

Built and operational water distribution networks

 

 Kilometres (km)

 400

 1 600

 Q2

2026 

A total of 1 600km of water distribution networks shall be built and made operational in the municipalities located in agglomerations prioritised by the Accelerated Plan for Compliance with European Directives and in compliance with the amendments to the Law No 241/2006 set out in Milestone 1.

7

Investment 1. Expansion of water and sewerage systems in agglomerations of more than 2 000 population equivalent , prioritised by the Accelerated Plan for Compliance with European Directives

Target

Sewage networks built and operational

 

Kilometres (km)

0

300

Q3

2024

At least 300km of sewage network shall be built and made operational in agglomerations of more than 2 000 population equivalents (l.e), prioritised by the Accelerated Plan for Compliance with the European Directives and in compliance with the amendments to the Law No 241/2006 set out in Milestone 1.

8

Investment 1. Expansion of water and sewerage systems in agglomerations of more than 2 000 population equivalent, prioritised by the Accelerated Plan for Compliance with European Directives

Target

Built and operational sewage networks built and operational in agglomerations prioritised by the Accelerated Plan for Compliance with the European Directives.

 

Kilometres (km)

300

2 500

Q2

2026

At least 2 500km of sewage network shall be built and made operational in total in agglomerations of more than 2000 population equivalents (l.e), prioritised by the Accelerated Plan for Compliance with the European Directives and in compliance with the amendments to the Law No 241/2006 set out in Milestone 1.

9

Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent that prevent the achievement of good status of water bodies and/or affect protected natural areas

Target

Individual or other appropriate systems built and operational in agglomerations of less than 2 000 population equivalent

 

Number

0

1 000

Q4

2023

At least 1 000 individual or other appropriate systems shall be built and made operational to relieve the load in agglomerations of less than 2 000 population equivalents that prevent the achievement of good status of water bodies and/or affect natural protected areas.

10

Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent that prevent the achievement of good status of water bodies and/or affect protected natural areas

Target

Individual or other appropriate systems built and operational in agglomerations of less than 2 000 population equivalent.

 

Number

1 000

12 900

Q2

2026

At least 12 900 in total individual or other appropriate systems shall be built and made operational to relieve the load in agglomerations of less than 2 000 population equivalents that prevent the achievement of good status of water bodies and/or affect natural protected areas.

11

Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent which prevent the achievement of good status of water bodies and/or affect natural protected areas

Target

Built and operational sewage network in agglomerations below 2 000 population equivalent.

 

Kilometres (km)

0

100

Q2

2024

At least 100km of sewage network in agglomerations below 2 000 population equivalents shall be built and operational and be compliant with the amendments to the Law No 241/2006 set out in milestone 1.

12

Investment 2. Collection of waste water in agglomerations of less than 2 000 population equivalent that prevent the achievement of good status of water bodies and/or affect protected natural areas

Target

Built and operational sewerage networks in agglomerations below 2 000 population equivalent

 

Kilometres (km)

100

400

Q2

2026

 At least 400km in total of sewage network in agglomerations below 2 000 population equivalents shall be built and operational and be compliant with the amendments to the Law No 241/2006 set out in milestone 1.

13

Investment 3. Supporting the connection of the low-income population to existing water and sewerage networks

Target

Households connected to water and sewerage networks through the National Programme First Connection to Water and Sanitation

 

Number

0

88 400

Q2

2026

At least 88 400 additional households shall be connected to water and sewerage through the National Programme First Connection to Water and Sanitation.

14

Investment 4.1 Rehabilitation of existing lines of defence in accordance with the Floods Directive and the National Strategy for Floods Risk Management

Target

Rehabilitated flood defence lines in line with the Floods Directive and the National Strategy for Flood Risk Management

 

Kilometres (km)

0

100

Q4

2024

At least 100km of flood defence lines shall be rehabilitated in line with the Floods Directive and the National Strategy for Flood Risk Management. Rehabilitation works shall be prioritised on the basis of flood prevention and protection plans, and shall consist of fillings from local material extracted from the dyke-riverbank areas, followed by grass coverings.

15

Investment. 4.1. Rehabilitation of existing lines of defence in accordance with the Floods Directive and the National Strategy for Floods Risk Management

Target

Rehabilitated flood defence lines in line with the Floods Directive and the National Strategy for Flood Risk Management

 

Kilometres (km)

100

510

Q1

2026

At least 510km in total of flood defence lines shall be rehabilitated in line with the Floods Directive and the National Strategy for Flood Risk Management.

Rehabilitation works shall be prioritised on the basis of flood prevention and protection plans, and shall consist of fillings from local material extracted from the dyke-riverbank areas, followed by grass coverings.

16

Investment 4.2. Rehabilitation of existing accumulations that require emergency interventions for safe operation

Milestone

Adoption of project designs by Government Decision/Ministerial Order, as applicable

Adoption of Government Decision/Ministerial Order, as applicable

Q2

2023

Subject to the outcome of the feasibility studies for 30 dams, the project designs for the rehabilitation of 20 existing dams, for which there are no feasible alternatives to reduce flood risk, shall be adopted by Government Decision/ Ministerial Order, as applicable (depending on the size of the investment). The feasibility studies shall include, in particular, an assessment and comparison of benefits and impacts of alternatives to the refurbishment of the dams, in order to prevent flood risks, including the possible removal of dams and their replacement by nature-based solutions. This benefit and impact analysis shall assess both the benefits expected from the different options in the long-term, in order to prevent flood risks and taking into account in particular predictions regarding future risks of floods, and the environmental outcomes.

The project shall have the objective of ensuring the safe operation of dams, reducing the risk of flooding, and protecting water bodies and biodiversity through measures to ensure fish migration, ecological flow, and preventing the eutrophication of water bodies.

It shall be in line with the National Flood Risk Management Strategy and applicable Flood Risk Management Plans, in compliance with Directive 2007/60/EC (Floods Directive).

Any measures identified in the framework of the Environmental Impact Assessment, the assessment under Directive 2000/60/EC (Water Framework Directive), and the Appropriate Assessment under Directive 92/43/EEC (Habitats Directive) as necessary to ensure compliance with the Do No Significant Harm Technical Guidance (2021/C58/01) shall be integrated into the project design and strictly complied with at the stages of construction, modernisation, operation and decommissioning of the infrastructure, including through the implementation of the required mitigation measures.

Deterioration of the ecological status of the affected water bodies shall be avoided and the measure shall not prevent the improvement of the ecological status or potential of the affected water bodies.

Where water is abstracted, a relevant permit shall be granted by the relevant authority, specifying conditions to avoid deterioration and ensure that affected water bodies remain in good ecological status, in accordance with the requirements of Water Framework Directive and evidenced by latest relevant supporting data.

Water abstraction shall be avoided where the concerned water bodies (surface or ground waters) are, or projected (in the context of intensifying climate change) to be in less than good status or potentially good status.

17

Investment 4.2. Rehabilitation of existing accumulations that require emergency interventions for safe operation

Target

Existing dams rehabilitated

 

Number

0

20

Q1

2026

20 existing dams, for which revised feasibility studies concluded that there are no feasible alternatives to reduce flood risks, shall be rehabilitated, in accordance with the requirements set out in milestone 16 and fully respecting the results and conditions set by the comprehensive and cumulative EIA that shall have been completed in accordance with Directive 2011/92/EU (EIA Directive), as well as relevant assessments in the context of Directive 2000/60/EC (Water Framework Directive) and the Appropriate Assessment under Directive 92/43/EEC (Habitats Directive), including the implementation of required mitigation measures. For the dams where removal and replacement by nature-based solutions has been identified as the best option, based on the outcome of the feasibility studies, further studies shall be finalised in order to assess dismantling options.

Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive shall be achieved and evidenced by latest relevant supporting data, and any deterioration shall be avoided.

18

Investment 5. Appropriate endowment of river basin administrations for flood monitoring, prevention and emergency response

Target

River Basin Administrations equipped with machinery for rough access and intervention, amphibious access and transport of mobile bags/dikes in hard-to-reach areas, drones equipped with LIDAR/Flir/photogrammetry sensors, geo-electroresistive/georadar technologies of dyke bodies as well as hardware and software infrastructure

 

Number

0

11

Q3

2023

11 River Basin Administrations shall be equipped with the following:

-machinery for rough terrain access and intervention, amphibious access and transport of mobile sand bags/dikes in hard-to-reach areas. In order to ensure compliance with the DNSH Technical Guidance (2021/C 58/01), vehicles to be purchased shall have specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, that are lower than 50gCO2/km;

-drones equipped with LIDAR/Flir/photogrammetry sensors,

-geo-electro resistive/geo radar technologies of dyke bodies;

-hardware and software infrastructure for data analysis and data storage collected by the above-mentioned equipment, in order to support and improve flood prevention and response to emergency situations.

19

Investment 6. Implementation of the water cadastre

Milestone

Water cadastre developed and operationalised

Water cadastre operational

Q4

2025

The water cadastre shall be developed and operationalised by:

- procuring Digital Terrain Model (DTM)/Digital Surface Model (DSM) at national level, based on satellite information which shall be made available to all State authorities;

- software development for determination of river bed modification (erosion sedimentation process), gravel extraction monitoring and land slide potential in the areas of dam-lake ensemble;

- semi-automatic digitisation and delineation of minor river beds based on DTM/DSM ortho-photo and satellite imagery.

20

Investment 7. Extension of the national observation network of the National Integrated Meteorological System (SIMIN)

Target

Purchased and operational meteorological stations

 

Number

0

400

Q4

2025

The network of autonomous surface automatic meteorological stations shall be extended with the acquisition and operationalisation of 300 automatic and autonomous surface meteorological stations and 100 agro-meteorological stations.

21

Investment 7. Extension of the national observation network of the National Integrated Meteorological System (SIMIN)

Milestone

Operational information and communication technology system for the integration of the additional meteorological and agro-meteorological stations in the National Integrated Meteorological System (SIMIN)

National Meteorological System (SIMIN) integrated with the additional stations operational

Q2

2026

The Information and communication technology for the integration of the additional meteorological stations in the National Integrated Meteorological System (SIMIN) shall be made operational.

B.COMPONENT 2: Forests and biodiversity protection

The objective of the component is to harmonise national forest management practices with those on preserving biodiversity and protecting the environment and ensuring a transition to a climate-neutral Europe by creating new areas covered by forests and restoring degraded habitats.

The component is comprised of two reforms and five investments.

The measures included in the component are expected to address some challenges highlighted by the country-specific recommendation to focus investment on the green and digital transition, in particular on environmental infrastructure among others (country-specific recommendation 4, 2019 and country-specific recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

B.1. Description of the reforms and investments for non-repayable financial support

Reform 1. Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation

The objective of the reform is to ensure a clear and robust strategic and regulatory framework for the implementation of sustainable forest policies that support climate change mitigation and adaptation.

The reform shall consist of the following actions:

(1) Completion of independent studies on weaknesses in governance, both institutional and regulatory, and implementation of the provisions of the current forestry legislation (by 30 June 2022);

(2) Adoption of the National Forest Strategy 2020-2030 on the basis of the recommendations of the assessment performed under (1) above (by 30 September 2022);

(3) Adoption and entry into force of amended Ministerial Ordinances laying down the binding rules for afforestation and reforestation foreseen in the National Forest Strategy 2020-2030 adopted under (2) (by 30 September 2023);

(4) Adoption and entry into force of legislative acts amending and supplementing the existing legislation on forests aimed at streamlining the legal framework, combatting illegal logging and improving forest management (by 30 June 2023).

The reform shall be supported with two investments – Investment 1 and 2.

The implementation of the reform shall be completed by 30 September 2023.

Investment 1. Afforestation and reforestation national campaign, including urban forests

The objective of the investment is to create new forests and areas with forest vegetation in areas vulnerable to climate change through land identification and assessment, financing of afforestation, plantation care, increase of the forest vegetation area along communication routes and within urban agglomerations (urban forests including mini-forests) around municipalities and between fields with agricultural crops, as well as other protective forest curtain categories.

As a result of this investment, a total of 56 700ha of new areas shall be afforested or reforested and a total of 3 150 000 m2 of new areas of urban forests shall be created, in compliance with the legal requirements laid down in the National Forest Strategy, adopted under Reform 1.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2. Development of modern production capacities of forest reproduction material

The objective of the investment is to develop sufficient reproductive production capacities (tree species and ecotypes) that are suitable for the future climatic conditions of Romania.

As a result of this investment, at least 90 new and renovated tree nurseries shall be made operational, in compliance with the legal requirements laid down in the National Forest Strategy adopted under Reform 1.

The implementation of the investment shall be completed by 30 September 2024.

B.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone/Target

Name

Qualitative

indicators
(for milestones)

Quantitative

indicators
(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit

of

measure

Base

line

Goal

Quarter

Year

22

Reform 1. Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation

Milestone

Adoption of the National Forest Strategy 2020-2030

Adoption of the National Forest Strategy 2020-2030

 

 

 

Q3

2022

National Forest Strategy 2020-2030 shall be adopted.

The Strategy shall, on the basis of the recommendations of the independent studies, set out binding rules for afforestation and reforestation as follows:

a. Requirements for species and ecotypes to be climate-resilient and without negative impact on biodiversity. The strategy shall respond to the need to have updated guidelines on tree planting in Romania and shall create safeguards, in particular, to exclude the use or release of invasive alien species

b. Requirements for the production of reproductive material to target tree species and ecotypes that are suitable for Romania’s future projected climatic conditions in sufficient quantities with the involvement of the private sector, and for measures to discourage the creation of commercial nurseries for short rotation or monoculture production.

c. Requirements for afforestation to contribute positively to the objectives of biodiversity conservation, water management and soil protection by prohibiting afforestation or reforestation on agricultural land with high nature value, grassland or wetlands, excluding habitat restoration.

d. Requirements for preventive measures that increase the natural absorption capacity of the soil to be included in forest management activities and specific climate change adaptation requirements to ensure that forest management is based on species monitoring.

e. Requirements for urban afforestation to be achieved through a landscape level approach that contributes to strengthening connectivity with natural or semi-natural areas (such as forests or agricultural areas) with a focus on linking habitats with green infrastructure and ecological corridors.

f. Requirements for afforestation and reforestation projects to be carried out in areas exposed and vulnerable to climatic hazards, in particular to drought and floods, and where appropriate afforestation or reforestation reduces the resulting risks.

g. The Strategy shall set out sustainability criteria for forest biomass for energy use.

h. The Strategy shall include specific actions to tackle illegal logging, such as a full implementation of SUMAL including logging monitoring through remote-sensing, strengthening of the sanctions regime, and other measures as appropriate.

i. The Strategy shall also include concrete measures for protecting forest habitats and species, and particularly the alignment of forestry norms with biodiversity considerations.

23

Reform 1. Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation

Milestone

Entry into force of amended Ministerial Ordinances laying down binding rules for afforestation and reforestation foreseen in the National Forestry Strategy 2020-2030

Provision in the Ministerial Ordinances indicating the entry into force of the amendments

Q3

2022

Entry into force of the following amended Ministerial Ordinances (MO) in line with the binding rules for afforestation and reforestation foreseen in the National Forest Strategy 2020-2030:

a.Order no. 766/2018 regarding the elaboration and amendment of forest management plans, including of the provisions for land use of forest land, as well as of the Methodology regarding the approval of annual windthrow harvesting quotas.

b.Order no. 1648/2000 on the approval of technical rules on compositions, schemes and technologies for forest regeneration and afforestation of degraded land

c.Order no. 1649/2000 on the approval of the Technical Norms for the care and management of stands

d.Order no. 1650/2000 on the approval of the Technical Norms on the choice and application of treatments

e.Order no. 1653/2000 regarding the approval of the Technical Norms regarding the annual control of regenerations

f.Order no. 1672/2000 regarding the approval of the Technical Norms for forest management

24

Reform 1. Reform of forest management and governance systems through the development of a new National Forest Strategy and subsequent legislation

Milestone

Entry into force of the legislative acts amending and supplementing the existing legislation on forests

Provision in the law indicating the entry into force of the legislative acts

 

 

 

Q2

2023

Entry into force of the following legislative acts, aimed at streamlining the legal framework, combatting illegal logging and improving forest management:

(i) New Forestry Code, setting out amendments to the criminal penalty system;

(ii) Emergency Ordinance No 85/2006 establishing the methods for assessing damage to forest vegetation in forests and beyond;

(iii) Law No 171/2010 on the sanctioning of forest offences, establishing calculation methods for the environmental and financial damage caused by illegal logging and other forest crime,

(iv) Other government decisions to combat illegal logging and improve forest management: Amendments to Government Decision No 743/2015, Government Decision No 1076/2009, Government Decision No 229/2009, Government Decision No 497/2020;

25

Investment 1. Afforestation and reforestation national campaign, including urban forests

Target

New areas of afforested or reforested land

 

ha

0

25 000

Q4

2023

New areas of afforested or reforested land (at least 25 000 ha), in compliance with the legal requirements laid down in the National Forest Strategy:

a.    Only species and ecotypes that are resilient to the future projected impacts of climate change shall be used and they shall have no adverse impacts on biodiversity. The use of non-native species shall only be allowed where it is demonstrated that their use leads to favourable and appropriate ecosystem conditions (such as climate, soil, vegetation areas, fire resilience) and that the native species present are no longer adapted to future modelled climatic conditions and pedo-hydrological conditions.

b.    Only tree species and ecotypes that are suitable for future projected climate conditions for Romania shall be used;

c.    Afforestation shall contribute positively to the objectives of biodiversity conservation, water management and soil protection. Afforestation shall not take place on agricultural land of high nature value, grassland or wetlands, unless the aim of the intervention is to restore habitats.

d.    Afforestation or reforestation projects shall be carried out in areas that are exposed and vulnerable to climate hazards, in particular to droughts and floods.

e. Afforestation and reforestation projects shall be subject to an Environmental Impact Assessment (EIA) procedure, if determined in the EIA screening procedure; and forest management plans relevant for the afforestation and reforestation actions shall undergo a full Strategic Environmental Assessment procedure (environmental report), in particular if they affect protected habitats and/or species.

26

Investment 1. Afforestation and reforestation national campaign, including urban forests

Target

New areas of afforested or reforested land

 

ha

25 000

56 700

Q2

2026

New areas of afforested or reforested land (total 56 700 ha), in compliance with the legal requirements laid down in the National Forest Strategy, and in accordance with the requirements specified in Target 25.

27

Investment 1. Afforestation and reforestation national campaign, including urban forests

Target

New areas of urban forests created.

 

m2

0

500 000

Q4

2023

New areas of urban forest (at least 500 000 m2), in compliance with the legal requirements laid down in the National Forest Strategy:

a.    Only species and ecotypes that are resilient to the future projected impacts of climate change shall be used and they shall have no adverse impacts on biodiversity. The use of non-native species shall only be allowed where it is demonstrated that their leads to favourable and appropriate ecosystem conditions (such as climate, soil, vegetation areas, fire resilience) and that the native species present are no longer adapted to future modelled climatic conditions and pedo-hydrological conditions.

b.    Only species and ecotypes that are suitable for future projected climate conditions for Romania shall be used;

c.    Urban afforestation shall be carried out by taking a landscape-level approach that strengthens connections with natural or semi-natural areas (such as forests or agricultural areas) with a focus on connecting habitats through green infrastructure and ecological corridors. The selection of species and ecotypes shall take into account their role in cleaning the air and providing other ecosystem services to urban areas.

d.    Afforestation shall contribute positively to the objectives of biodiversity conservation, water management and soil protection. Afforestation shall not take place on agricultural land of high nature value, grassland or wetlands, unless the aim of the intervention is to restore habitats.

e.    Afforestation or reforestation projects shall be carried out in areas that are exposed and vulnerable to climate hazards, in particular to droughts and floods.

28

Investment 1. Afforestation and reforestation national campaign, including urban forests

Target

New areas of urban forests created

 

 

m2

500 000

3 150 000

Q2

2026

New areas of urban forests (total 3 150 000 m2), in compliance with the legal requirements laid down in the Forest Strategy, and in accordance with the requirements specified in Target 25.

29

Investment 2. Development of modern production capacities of forest reproduction material

Target

New and renovated tree nurseries operational (established or rehabilitated)

 

Number

0

90

Q3

2024

New and renovated tree nurseries operational (at least 90), in compliance with the legal requirements laid down in the National Forest Strategy. The production of reproductive material shall target tree species and ecotypes that are suitable for Romania’s future projected climatic conditions.

B.3.    Description of the reforms and investments for the loan

Reform 2. Reform of the management system of protected natural areas for the coherent and effective implementation of the European Biodiversity Strategy

The objective of this reform is to operationalise the current framework for designating nature protected areas, in particular through the establishment of a mechanism to link legislation specific to the various sectors with an impact on biodiversity, namely education, agriculture, forestry, hunting, tourism, spatial organisation, transport and energy.

This shall be attained through the adoption and entry into force of two legislative acts:

(1) legislative act setting up the inter-institutional committee to analyse the legal framework applicable to sectors with an impact on biodiversity and to draw up and promote proposals to amend or supplement the legal framework in light of up-to-date information on the distribution and dynamics of the conservation status of species and habitats (by 30 June 2022);

(2) legislative act modifying the legal framework applicable to sectors with an impact on biodiversity, with the aim of ensuring that the existing legal framework in the various relevant sectors does not affect/restrict the implementation of the conservation measures in the management plans of the nature protected areas (by 30 June 2025). The legislative act shall be based on the proposals of the committee established under (1).

The implementation of the reform shall be completed by 30 June 2025.

Investment 3. Update of approved management plans and identification of potential areas for strict protection in natural terrestrial and marine habitats in order to implement the EU Biodiversity Strategy for 2030

The investment consists of two sub-investments.

The objective of the first sub-investment (Investment 3.1) is to update approved management plans. The objective of the second sub-investment (Investment 3.2) is to identify potential areas for strict protection in line with the EU Biodiversity Strategy for 2030.

As regards the update of existing management plans, as a result of the investment, at least 250 management plans of nature protected areas shall be reviewed and updated in accordance with EU legislation by 30 June 2026.

The implementation of this sub-investment shall be completed by 30 June 2026.

As regards the strictly protected areas, two legislative acts shall be adopted and enter into force: (1) legislative act for the designation of strictly protected areas identified in Natura 2000 protected areas with existing management plans or including primary and old-growth forests (by 31 December 2023); and (2) legislative act for the designation of strictly protected areas identified in Natura 2000 protected areas without existing management plans and in other areas (by 31 December 2025).

The implementation of this sub-investment shall be completed by 31 December 2025.

Investment 4. Integrated investments for the ecological reconstruction of habitats and the conservation of species related to meadows, aquatic and water-dependent areas

This investment consists of five sub-investments.

The objective of the first sub-investment (Investment 4.1) is to restore connectivity of watercourses through the removal of obstacles in watercourses and as result contributing to the restoration of lateral connectivity of water-dependent aquatic habitats and species, in line with the applicable management plans of the protected natural areas. As a result of this sub-investment, the connectivity of 1 700ha of riparian habitats shall be restored

The implementation of this sub-investment shall be completed by 30 June 2026.

The second sub-investment (Investment 4.2) aims at rebuilding grassland habitats in the protected natural areas. As a result of this sub-investment, at least 2 800 ha of grassland habitats shall be ecologically restored.

The implementation of this sub-investment shall be completed by 30 June 2026.

The third sub-investment (Investment 4.3) aims at reducing eutrophication and maintaining biological diversity of Danube Delta lakes. The actions to be covered under this sub-investment include regulation of water level in two lakes, designing and achieving the optimum profile of lakes’ boundaries, decolourisation, bank consolidation, maintenance works, felling for regeneration of vegetation and trees in the perimeter, removal of timber and beaches that obscure water circulation and induce sedimentation, monitoring of species and habitats in the area, and small-scale run-off works for optimal water circulation. As a result of this sub-investment, at least 100ha of lake areas shall have benefitted from the removal of aquatic plants, on the basis of the updated feasibility study (June 2021).

The implementation of this investment shall be completed by 30 June 2026.

The fourth sub-investment’s (Investment 4.4) objective is to develop a wild sturgeon monitoring system along the Lower Danube (1 500km), in conjunction with AI, in order to fight its poaching. As a result of this sub-investment, a network for monitoring, communication and transmission of wild sturgeon data shall be made operational. It is expected that this sub-investment does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, vehicles to be purchased shall have specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, that are lower than 50gCO2/km. Water transport vessels to be purchased shall correspond to the best-available technology from an environmental point of view.

The implementation of this sub-investment shall be completed by 30 September 2024.

Finally, the objective of the fifth sub-investment (Investment 4.5) is to modernise public access and visitors’ infrastructure of the Danube Delta in order to reduce the pressure on habitats and species. As a result of this sub-investment, 10 visiting centres shall be constructed, aimed at alleviating the pressure of tourism on habitats by channelling and monitoring tourist flows to a network of 10 visiting centres associated with 40 observation points appropriately equipped for the needs of all categories of visitors. The construction of the visiting centres shall use environmentally friendly technologies, ecosystem-based approaches, and materials in a traditional way to the community architecture of the Danube Delta.

The implementation of this sub-investment shall be completed by 30 June 2026.

Investment 5. Integrated flood risk mitigation systems in forest river basins

The objective of the investment is to reduce flood risk in order to protect people, infrastructure and socio-economic objectives in risk areas, as well as to protect the environment and biodiversity through relevant environmental measures, in particular those relating to ensuring fish migration and ensuring ecological flow.

The investment shall be carried out in two steps:

(1) adoption of the project design for the modernisation works for flood protection, which shall include: (i) restoration of at least 6 damaged alluvium retention structures to install longitudinal measures (fish ladders and ecological flow); (ii) construction of at least 30 new alluvial structures, including fish ladders and ecological flow, with a maximum height of 5 m; (iii) restoration of at least 4ha of land through reforestation, weeding, or building of twig fences; and (iv) restoration of at least 30km of torrent bed. This implementation of this step shall be completed by 31 March 2023.

(2) completion of modernisation works for flood protection on the basis of project design adopted under (1) above. The implementation of this step shall be completed by 30 June 2026.

Any measures identified in the framework of the assessment under Directive 2000/60/EC (Water Framework Directive) as necessary to ensure compliance with the Do No Significant Harm Technical Guidance (2021/C58/01) shall be integrated into the project design and strictly complied with at all stages of construction, modernisation, operation and decommissioning. Deterioration of the ecological status of the affected water bodies shall be avoided and the measure shall not prevent the improvement of the ecological status or potential of the affected water bodies.

The implementation of the investment shall be completed by 30 June 2026.

B.4.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

30

Reform 2. Reform of the management system for protected natural areas through coherent and effective implementation of the European Biodiversity Strategy

Milestone

Entry into force of the legislative act setting up the inter-institutional committee to analyse the legal framework applicable to sectors with an impact on biodiversity

Provision in the law indicating the entry into force of the legislative act

Q2

2022

Entry into force of the legislative act setting up the inter-institutional committee to analyse the legal framework applicable to sectors with an impact on biodiversity, namely education, agriculture, forestry, hunting, tourism, spatial organisation, transport and energy.

The Committee shall be steered by the Ministry of the Environment, Waters and Forests and it shall include the line ministries and the subordinated authorities responsible for the relevant sectors: education, agriculture, forestry, hunting, tourism, spatial organisation, transport and energy.

The committee shall prepare proposals to revise the legal framework in the light of up-to-date information on the distribution and dynamics of the conservation status of species and habitats.

31

Reform 2. Reform of the management system for protected natural areas through coherent and effective implementation of the European Biodiversity Strategy

Milestone

Entry into force of the legislative act modifying the legal framework applicable to sectors with an impact on biodiversity

Provision in the law indicating the entry into force of the legislative act

Q2

2025

Entry into force of the legislative act modifying the legal framework applicable to sectors with an impact on biodiversity.

The objective of these legislative amendments shall be to ensure that the existing legal framework in the various relevant sectors does not affect/restrict the implementation of the conservation measures in the management plans of the nature protected areas.

The legislative act shall be based on the proposals of the committee in the light of up-to-date information on the distribution and dynamics of the conservation status of species and habitats.

32

Investment 3.1 Update of approved management plans

Target

Nature protected areas with updated management plans entered into force

 

Number

0

100

Q1

2025

Nature protected areas (at least 100) with updated management plans shall enter into force. Priority shall be given to the areas potentially impacted by infrastructure projects for which Romania has committed, under the relevant EU legislation, to further collect monitoring data in view of defining site specific conservation objectives for habitats and species, including migratory bird species.

33

Investment. 3.1 Update of approved management plans

Target

Nature protected areas with updated management plans entered into force

 

Number

100

250

Q2

2026

At least 250 nature protected areas with updated management plans entered into force. Priority shall be given to the areas potentially impacted by infrastructure projects for which Romania has committed, under the relevant EU legislation, to further collect monitoring data in view of defining site specific conservation objectives for habitats and species, including migratory bird species.

34

Investment 3.2 Identification of potential areas for strict protection in natural terrestrial and marine habitats in order to implement the EU Biodiversity Strategy for 2030

Milestone

Entry into force of the legislative act for the designation of strictly protected areas (identified in Natura 2000 protected areas with existing management plans or including primary and old-growth forests)

Provision in the law indicating the entry into force of legislative act

Q4

2023

Entry into force of the legislative act for the designation of strictly protected areas. The act shall be based on the analyses/studies and mapping of the demarcation of areas proposed for non-intervention (strictly protected), that are necessary to substantiate a proposal for a legislative act, based on the EU Biodiversity Strategy for 2030. The legislative act shall designate strictly protected areas identified in Natura 2000 protected areas with existing management plans or including primary and old-growth forests.

35

Investment 3.2. Identification of potential areas for strict protection in natural terrestrial and marine habitats in order to implement the EU Biodiversity Strategy for 2030

Milestone

Entry into force of the legislative act for the designation of strictly protected areas (identified in Natura 2000 protected areas without existing management plans and in other areas)

Provision in the law indicating the entry into force of legislative act

Q4

2025

Entry into force of the legislative act for the designation of strictly protected areas. The act shall be based on the analyses/studies and mapping of the demarcation of areas proposed for non-intervention (strictly protected), that are necessary to substantiate a proposal for a legislative act, based on the EU Biodiversity Strategy 2030. The legislative act shall designate strictly protected areas identified in Natura 2000 protected areas without existing management plans and in additional areas.

36

Investment 4.1. Removal of obstacles in watercourses in order to facilitate the restoration of connectivity of dependent habitats and species

Target

Riparian habitats with restored connectivity

 

ha

0

1 700

Q2

2026

Riparian habitats with restored connectivity (at least 1 700ha)

37

Investment 4.2 Reconstruction of grassland habitats in protected natural areas

Target

Grassland habitats ecologically restored

 

ha

0

2 800

Q2

2026

Grassland habitats (at least 2 800ha) ecologically restored.

38

Investment 4.3 Decolourisation of the Danube Delta lakes in order to reduce eutrophication and maintain biological diversity

Target

Lake areas that have benefitted from the removal of aquatic plants

 

ha

0

100

Q2

2026

Lake areas (at least 100ha) that have benefitted from the removal of aquatic plants, on the basis of the updated feasibility study (June 2021).

39

Investment 4.4 Implementation of a monitoring system for wild sturgeons along the Lower Danube

Milestone

Network for monitoring, communication and transmission of wild sturgeon data operational

 Network is operational

Q3

2024

Network for monitoring, communication and transmission of wild sturgeon data operational. The measures shall develop a wild sturgeon monitoring system along the Lower Danube (1 500km), in conjunction with AI, with a view to fight poaching. In order to ensure compliance with the DNSH Technical Guidance (2021/C 58/01), vehicles to be purchased shall have specific emissions of CO2, as defined in Article 3(1), point (h), of Regulation (EU) 2019/631, that are lower than 50gCO2/km. Water transport vessels to be purchased shall correspond to the best-available technology from an environmental point of view.

40

Investment 4.5. Reconfiguration of the public access and visit infrastructure for the Danube Delta in order to reduce the pressure of tourism on habitats and species

Target

Visiting centres constructed to alleviate the pressure of tourism on habitats

 

Number

0

10

Q2

2026

10 visiting centres constructed, aimed at alleviating the pressure of tourism on habitats by channelling and monitoring tourist flows to a network of 10 visiting centres associated with 40 observation points appropriately equipped and equipped for the needs of all categories of visitors.

The locations shall be selected in accordance with the criteria in the Management Plan for the Danube Delta Reservation which is currently under revision.

The construction of the visiting centres shall use environmentally friendly technologies, ecosystem-based approaches, and materials in a traditional way to the community architecture of the Danube Delta

41

Investment 5. Integrated flood risk mitigation systems in forest river basins

Milestone

Adoption of project design

Adoption of project design

Q1

2023

The project design for the modernisation works for flood protection shall be adopted. It shall include:

-Restoration of at least 6 damaged alluvium retention structures to install longitudinal measures (fish ladders and ecological flow);

-Construction of at least 30 new alluvial structures, including fish ladders and ecological flow, with a maximum height of 5m;

-At least 4ha of land restored through reforestation, weeding, or building of twig fences;

-at least 30km of torrent bed restored.

Any measures identified in the framework of the assessment under Directive 2000/60/EC (Water Framework Directive) as necessary to ensure compliance with the Do No Significant Harm Technical Guidance (2021/C58/01) shall be integrated into the project design and strictly complied with at the stages of construction, modernisation, operation and decommissioning. Deterioration of the ecological status of the affected water bodies shall be avoided and the measure shall not prevent the improvement of the ecological status or potential of the affected water bodies.

42

Investment 5. Integrated flood risk mitigation systems in forest river basins

Milestone

Completion of modernisation works for flood protection

Completion of modernisation of works for flood protection

Q2

2026

The project for modernisation of flood protection shall be completed, in accordance with the requirements set out in milestone 41.

C.COMPONENT 3: Waste management

The objective of the component is to accelerate the expansion and modernisation of waste management systems in Romania with a focus on separate collection, prevention, reduction, re-use and recovery to comply with the applicable EU legislation and transition to the circular economy.

The component is comprised of one reform and three investments.

The measures included in the component are expected to address some of the challenges highlighted by the country-specific recommendation to focus investment on the green and digital transition, in particular on environmental infrastructure among others (country-specific recommendations 2019 and 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

C.1.    Description of the reforms and investments for the loan

Reform 1. Improving waste management governance to accelerate the transition to the circular economy

The objective of this reform is to create a strategic and legal framework for the transition to the circular economy by adopting the National Strategy for Circular Economy and an Action Plan, and amending certain legal acts related to waste management.

The implementation of this reform shall consist of the following steps:

(1) Adoption of the National Circular Economy Strategy to set the framework for the transformation of the Romanian economy towards a circular operation, covering the whole life cycle of products (by 31 September 2022);

(2) Entry into force of the legislative acts necessary for an operationalisation of a unitary waste management in accordance with the National Waste Management Plan, in particular legislations related to the treatment of waste, the sanitation services of municipalities and the fixing of tariffs of the sanitation services and the extended packaging producer responsibility (by 31 September 2022);

(3) Adoption of the Action Plan for the National Circular Economy Strategy defining the key implementing steps of the Strategy (referred under (1) above), the responsible authorities and a binding timeline of the actions (by 31 September 2023). All the actions assigned to the public authorities under the Strategy and the Action Plan shall be completed by 30 March 2026.

As a result of the reform, control and monitoring and the environmental quality parameters of the Romanian waste management system shall be improved and the level of separate waste collection shall be increased. A contribution of 4,5 percentage points to the 50% national recycling and preparation for reuse target by 2025 shall be attained by 30 June 2026.

The implementation of the reform shall be completed by 30 June 2026.

Reform 1 shall be accompanied by three investments – Investments 1, 2 and 3.

Investment 1. Development, modernisation and completion of integrated municipal waste management systems at county level or at city/municipality level

The objective of this investment is to develop and modernise the integrated waste management systems and infrastructure for the management of public waste at county or city/municipality level.

The investment shall contribute to reaching the new targets for the preparation, re-use and recycling of municipal waste under the Directive (EU) 2018/851 amending Directive 2008/98/EC on waste. Investments shall be based on the National Waste Management Plan, County Waste Management Plans and Bucharest Municipality Waste Management Plan, and contribute to the recycling targets of the circular economy package.

The implementation of this investment shall include:

(a) establishment of voluntary waste collection centres, in order to ensure separate collection of household waste for a number of waste streams (I.1.a), as a result of which 565 voluntary collection centres shall be operational by 30 June 2026.

(b) establishment of digitalised eco-islands for separate collection of waste at local level, predominantly in apartment block areas (I.1.b), as a result of which 13 752 digitised eco-islands for separate collection of waste shall be operational by 30 June 2026.

(c) integrated centres for urban agglomerations for separate waste collection (I.1.c), as a result of which integrated waste collection centres shall be operational in 15 urban agglomerations by 30 June 2026.

(d) construction of waste recycling facilities to meet the recycling targets of the circular economy package (I.1.d), as a result of which 26 waste recycling facilities shall be put in operation by 30 June 2026 to meet the recycling targets of the National Circular Economy Strategy.

The above investments (a-d) shall be in line with the provisions of the National Waste Management Plan, the County Waste Management Plans and the Bucharest Municipality Waste Management Plan, as applicable.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

The implementation of the investment shall be completed by 30 June 2026.

Investment 2. Development of infrastructure for manure and other compostable agricultural waste management

The objective of the investment is to develop manure collection and recovery systems.

The investment shall primarily consist of the establishment of integrated communal systems for manure recovery, composting stations and compost management equipment for large farm communities, biogas systems and the purchase of equipment for the management of agricultural compost. The proposed investments aim to modernise infrastructure, reduce ammonia and methane emissions and reduce nitrate pollution.

As a result of the investment, 254 integrated systems for the collection of compostable agricultural waste shall be established and made operational by 30 June 2026.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

The investment shall be in line with the National Waste Management Plan.

The implementation of the investment shall be completed by 30 June 2026.

Investment 3. Development of public monitoring, control and institutional capacities for waste management and pollution prevention

The objective of this investment is to equip the respective public authorities for waste management monitoring, control and reporting activities.

The investment shall be implemented through two strands of action:

(1) Equipping 43 National Environmental Guard County Commissioners with digital equipment (ICT system, truck scanning systems, dashcam and body-worn video cameras, unmanned aerial vehicles) for waste management monitoring and control activities (by 31 December 2024). As a result, 400 control missions shall be conducted by the National Environmental Guard Commissioners using the new digital equipment by 31 December 2025.

(2) Purchase and operationalisation of 513 air quality, radioactivity and noise monitoring equipment for the National Environmental Protection Agency to ensure collection, transmission, storage and enable reporting of data on pollutant concentrations in the environment (by 30 June 2025).

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

The implementation of the investment shall be completed by 31 December 2025.

C.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq. Num.

Related Measure (Reform or Investment)

Milestone/Target

Name

Qualitative

indicators
(for milestones)

Quantitative indicators (for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit

of

measure

Base

line

Goal

Quarter

Year

43

Reform 1 Improving waste management governance to accelerate the transition to the circular economy

Milestone

The adoption of the National Circular Economy Strategy

Adoption of the National Circular Economy Strategy by Government Decision

Q3

2022

Adoption of the National Circular Economy Strategy, which shall be based on the recommendations of the ongoing Technical Support Instrument project.

The strategy shall set out rules for the entire life cycle of products and define the following key elements:

-regulatory, financial and information management methods and tools to support circular initiatives;

-identification of sectors to be covered;

-revision of environmental and economic incentives on waste in order to make recycling more convenient than landfilling and incineration;

-guidelines for using the financial and management methods/tools in the respective sectors;

-governance framework for collaboration between stakeholders (authorities, academia, the private sector, the non-profit sector and citizens).

The National Circular Economy Strategy shall effectively contribute to the EU targets on waste recycling, in particular in recycling of municipal waste and the reduction of the high landfilling rates.

44

Reform 1 Improving waste management governance to accelerate the transition to the circular economy

Milestone

The adoption of the Action Plan for the National Circular Economy Strategy

Adoption of the Action Plan for the National Circular Economy Strategy by Government Decision of Romania

Q3

2023

The Action Plan shall define the key implementing steps of the Strategy adopted under milestone 43, the responsible authorities and a binding timeline for the identified actions based on the expert recommendations to be formulated within the Technical Support Instrument project.

The plan shall include an adequate implementation monitoring system and corrective tools to ensure the achievement of the planned key actions.

45

Reform 1 Improving waste management governance to accelerate the transition to the circular economy

Milestone

Implementation of actions of the National Circular Economy Strategy and Action Plan assigned to the public authorities

Implementation of actions in the National Circular Economy Strategy and Action Plan assigned to the public authorities

Q1

2026

Completion of the implementation of all the actions foreseen in the National Circular Economy Strategy and Action Plan and assigned to the public authorities.

46

Reform 1 Improving waste management governance to accelerate the transition to the circular economy

Milestone

Entry into force of the legislative acts necessary for an operationalisation of a unitary waste management in accordance with the National Waste Management Plan

Provision in the law indicating the entry into force of the legislative acts for waste management practice

Q3

2022

Entry into force of legislative acts necessary to consolidate compliant waste management in Romania, in particular through the governance measures on municipal waste management in the National Waste Management Plan, in order to achieve the waste management targets of the EU Waste Framework Directive.

The following legislative acts shall enter into force:

1. Ordinance on waste regime, which

shall regulate extended producer responsibility according to the Waste Framework Directive. The Ordinance shall also introduce severe penalties to discourage illegal landfilling, waste dumping and open air burning.

2. Ordinance for the amendment of Law 101/2006 (The Sanitation Law).

3. Amendment of the National Regulatory Authority for Community Public Utilities Services (ANRSC) Order 109/2007 on Sanitation Tariff Methodology.

The Ordinance (No. 2) and the amended ANRSC Order (No. 3) shall regulate:

-the full operationalization of the economic instruments (pay as you throw, landfill tax and extended producer responsibility);

-the role of the National Regulatory Authority for Community Public Utilities Services as the national regulatory authority for municipal waste tariff policy;

-the financial responsibilities of inter-community development associations with regard to the integrated waste management systems projects.

47

Reform 1 Improving waste management governance to accelerate the transition to the circular economy

Target

Contribution with 4,5% to the 50% national recycling and preparation for reuse target by 2025

Contribution with 4,5% to the 50% national recycling and preparation for reuse target

45,5

50

Q2

2026

A contribution of 4,5 percentage points by the National Recovery and Resilience Plan investments in municipal waste management to the national 50% recycling and preparation for reuse target of municipal waste to be achieved by 2025 (as defined in the Waste Framework Directive, (2008/98/EC amended by Directive (EU) 2018/851) and the 2011/753/EU Commission Decision of 18 November 2011 establishing rules and calculation methods for verifying compliance with the targets set in Article 11(2) of Directive 2008/98/EC).

The contribution shall be calculated based on the volumes of municipal waste from infrastructure supported by the national recovery and resilience plan which shall be recycled in 2025. The contribution shall be calculated in relation to the 50% national recycling and preparation for reuse target set for 2025.

48

Investment 1.a Establishment of voluntary collection centres

Target

Voluntary collection centres established and operational

Number

0

250

Q3

2024

At least 250 voluntary collection centres established and operational, in line with National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plans.

Voluntary collection centres are foreseen to service communities of approx. 50 000 inhabitants. The centres shall be located at the border or outside the Territorial Administrative Unit.

The centres shall ensure the separate collection of household waste that cannot be collected in a door-to-door system, respectively recyclable waste and bio-waste that cannot be collected in individual bins, as well as special waste streams (bulky waste, waste electrical and electronic equipment, used batteries, hazardous waste, construction and demolition waste).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

49

Investment 1.a Establishment of voluntary collection centres

Target

Voluntary collection centres established and operational

Number

250

565

Q2

2026

565 voluntary collection centres, established and operational, in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan..

Voluntary collection centres are foreseen to service communities of approx. 50 000 inhabitants. The centres shall be located at the border or outside the Territorial Administrative Unit.

The centres shall ensure the separate collection of household waste that cannot be collected in a door-to-door system, respectively recyclable waste and bio-waste that cannot be collected in individual bins, as well as special waste streams (bulky waste, waste electrical and electronic equipment, used batteries, hazardous waste, construction and demolition waste).

50

Investment 1.b Construction of digitised eco-islands for separate collection of waste at local level

Target

Digitised eco-islands for separate collection of waste, established and operational

Number

0

7 000

Q4

2024

At least 7 000 digitised eco-islands for separate collection of waste, established and operational, in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan..

Digitised eco-islands shall be used to serve apartment blocks areas inside localities.

Priority shall be given to communities with the highest needs in correlation with the County Waste Management Plans/ National Management Plan and complementary to Cohesion Policy investments based on the following criteria:

-waste generation capacity in relation with the size of the locality (rank I municipalities, rank II municipalities and towns);

-low current level of separate waste collection;

-availability of existing waste treatment facilities.

The digitized eco-islands shall ensure the separate collection of household waste, mainly in block areas, for the following waste streams collected separately: paper and cardboard waste, plastic waste, metal waste, glass waste, biowaste, residual waste. Each eco-island shall serve at least 200 inhabitants.

51

Investment 1.b Construction of digitised eco-islands for separate collection of waste at local level

Target

Digitised eco-islands for separate collection of waste, established and operational

Number

7 000

13 752

Q2

2026

13 752 digitised eco-islands for separate collection of waste, established and operational, in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan.

Digitised eco-islands shall be used to serve apartment blocks areas inside localities.

Priority shall be given to communities with the highest needs in correlation with the County Waste Management Plans/ National Management Plan and complementary to Cohesion Policy investments based on the following criteria:

-waste generation capacity in relation with the size of the locality (rank I municipalities, rank II municipalities and towns);

-low current level of separate waste collection;

-availability of existing waste treatment facilities.

The digitized ecological islands shall ensure the separate collection of household waste, mainly in block areas, for the following waste streams collected separately: paper and cardboard waste, plastic waste, metal waste, glass waste, biowaste, residual waste. Each eco-island shall serve at least 200 inhabitants.

52

Investment 1.c Integrated centres for urban agglomerations concerning separate collection

Target

Integrated waste collection centres established and in operation in urban agglomerations

Number

0

7

Q4

2024

At least 7 integrated waste collection centres established and in operation in urban agglomerations, in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan.

The locations shall ensure a coverage of the most populated regions as follows:

-Bucharest (North side) and affiliated Ilfov region;

-Bucharest (South side) and affiliated Ilfov region;

-Constanta;

-Galati and Braila;

-Iasi;

-Bacau;

-Craiova;

-Ploiesti;

-Timisoara;

-Cluj-Napoca;

-Sibiu;

-Brasov;

-Baia Mare;

-Targu Mures;

-Buzau.

The centres shall ensure the separate collection of household waste that cannot be collected in a door-to-door system, respectively recyclable waste and bio-waste that cannot be collected in individual bins, as well as special waste streams - bulky waste, waste electrical and electronic equipment, used batteries, hazardous waste, construction and demolition waste.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

53

Investment 1.c Integrated centres for urban agglomerations concerning separate collection

Target

Integrated waste collection centres established and in operation in urban agglomerations

Number

7

15

Q2

2026

At least 8 additional integrated waste collection centres shall be established and in operation in urban agglomerations, in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan.

The locations shall ensure a coverage of the most populated regions as follows:

-Bucharest (North side) and affiliated Ilfov region;

-Bucharest (South side) and affiliated Ilfov region;

-Constanta;

-Galati and Braila;

-Iasi;

-Bacau;

-Craiova;

-Ploiesti;

-Timisoara;

-Cluj-Napoca;

-Sibiu;

-Brasov;

-Baia Mare;

-Targu Mures;

-Buzau.

The centres shall ensure the separate collection of household waste that cannot be collected in a door-to-door system, respectively recyclable waste and bio-waste that cannot be collected in individual bins, as well as special waste streams - bulky waste, waste electrical and electronic equipment, used batteries, hazardous waste, construction and demolition waste.

54

Investment 1.d Construction of waste recycling facilities to meet the recycling targets of the circular economy package

Target

Waste recycling facilities constructed and in operation

Number

0

26

Q2

2026

26 waste recycling facilities shall be constructed and put in operation to meet the recycling targets of the National Circular Economy Strategy and in line with the National Waste Management Plan/County Waste Management Plans and Bucharest Municipality Waste Management Plan. Support shall be provided to private economic operators investing in separately collected waste recycling facilities to reduce the environmental and population impact of waste, reduce resource consumption in order to promote sustainable economic development in all regions and achieve the recycling targets of the circular economy package. State-of-the-art projects, digitalised through their design of operation, monitoring and intervention, reducing the technological consumption of energy, technology transport and maintenance shall be prioritised.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

55

Investment 2 Development of infrastructure for manure and other compostable agricultural waste management

Target

Integrated systems for the collection of compostable agricultural waste, established and operational.

Number

0

254

Q2

2026

At least 254 integrated systems for the collection of compostable agricultural waste shall be established and made operational, in line with the National Waste Management Plan, as follows:

-150 Communal integrated systems (communal platform, individual platforms for small and medium farmers, and customized equipment for compost management);

-94 Communal integrated systems for communities with existing communal platform (individual platforms for small and medium farmers, and customized equipment for compost management);

-5 Composting Systems for communities with large farms (composting station and customized equipment for compost management);

-5 Biogas Systems for communities with very large farms (with electric capacities of at least 300KWh and heat capacities of at least 300KWth).

The large farms and communities of farmers (communes and cities) shall be selected taking into consideration the best environmental positive impact versus the public cost of the investments, based on guidelines specifying clearly the selection criteria, including:

-the number of animals, in order to prove the actual (not historical) source of pollution;

-the concentration and trend of nitrates in underground waters;

-availability of a proper site for construction;

-positive cost-benefit analysis; demonstrating long time sustainability of the investment, including models of circular economy (with accent on biogas stations);

-availability of financial resources for co-financing and for further operation of investments;

-positive public consultations to demonstrate the social acceptance of the environmental investment.

The small and medium scale farmers benefiting of small platforms shall live in the communities where manure management platforms are functional or new platforms shall be constructed and shall be the owners of the animals bred within those communities.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

56

Investment 3.a Monitoring and Control Equipment for the National Environmental Guard

Target

National Environmental Guard County Commissioners equipped with digital equipment for waste management monitoring and control activities

Number

0

43

Q4

2024

Operationalisation of equipment for 43 Commissioners of the Environmental Guard for waste management monitoring and control activities, in order to increase the traceability of waste, increase visibility on the real route of waste shipments and thus reduce the quantities of illegal waste transport. The following equipment shall be purchased:

-1 ICT integrated system servicing the 43 Commissioners;

-8 truck scanning systems;

-271 dash cam video cameras;

-16 unmanned Aerial Vehicles;

-8 utility vehicles equipped with radio communication for the transport of monitoring equipment;

-709 body worn Cameras.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the vehicles purchased under this measure shall be the best-available-technology from an environmental point of view.

57

Investment 3.a Monitoring and Control Equipment for the National Environmental Guard

Target

400 control missions using the monitoring and control equipment

Number

0

400

Q4

2025

400 control missions conducted by the National Environmental Guard Commissioners using the digital equipment, acquired under milestone 56, for monitoring and control activities.

58

Investment 3.b Air quality, radioactivity and noise monitoring equipment for the National Environmental Protection Agency

Target

operationalisation of air quality, radioactivity and noise monitoring equipment

Number

0

513

Q2

2025

Air quality, radioactivity and noise monitoring equipment shall be procured and made operational.

The equipment shall ensure collection, transmission, storage and enable reporting of data on pollutant concentrations in the environment.

The purchase of this equipment shall only take place after the adoption of the National Air Control Programme (part of the Sustainable Transport component of the national recovery and resilience plan and estimated for adoption in June 2022) based on the needs foreseen in the programme.

D.COMPONENT 4: Sustainable Transport

This component of the recovery and resilience plan addresses several challenges related to sustainable transport to promote smart, safe and inclusive mobility in Romania. It should be seen in connection with the component 10 “Local Fund” which includes complementary measures for sustainability mobility in urban areas.

The objective of this component is to enhance the sustainability of Romanian transport sector by supporting its green and digital transition. The reforms supporting the investments include regulatory changes to incentivise zero-emission road transport, improve the governance of state-owned enterprises in transport sectors, improve road safety, promote clean public transport, promote modal shift to railways and inland waterways.

The reforms and investments shall contribute to addressing the country-specific recommendations conveyed to Romania in 2019 and 2020, on the need to: (i) “front-load mature public investment projects and promote private investment to foster the economic recovery” and “focus investment on the green and digital transition, in particular on sustainable transport” (country-specific recommendation 3, 2020) while “taking into account regional disparities” (country-specific recommendation 4, 2019); (ii) “improve preparation and prioritisation of large projects and accelerate their implementation (country-specific recommendation 4, 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). Investments in road infrastructure are focused on TEN-T core network, contribute to economic and social cohesion and are accompanied by significant reforms to decarbonise the road transport, develop alternative fuels infrastructure, improve road safety and promote clean public transport and modal shift.

D.1.    Description of the reforms and investments for non-repayable financial support

Reform 1. Sustainable transport, decarbonisation and road safety

The reform aims to support the transition towards sustainable and smart mobility by developing and improving the strategic, legal and operational framework of the transport system in Romania. The proposed reform is linked to measures for sustainable urban mobility included in the component “Local Fund” so as to ensure complementarity and synergies with measures taken at local level.

The reform includes:

1.1 Road decarbonisation in line with “polluter pays” principle

A legislative package shall implement a new taxation system in line with the polluter pays principle and other principles of environmental taxation. The package shall include (i) distance-based charging for heavy goods vehicles (lorries and other types of lorries) and (ii) , incentive schemes for fleet renewal (in particular small cars/coaches/buses) through scrapping schemes, in combination with taxation measures for the ownership of the most polluting passenger vehicles. The new charging system shall be implemented in a non-discriminatory manner.

The Ministry of Transport and Infrastructure shall carry out an analysis to define more specifically the level of charging, in particular for heavy traffic, with the specific incentives for electric/hybrid vehicles, including light vehicles, the timing for the gradual introduction of such charges, the categories of vehicles to be included in the toll system, the level of pollution of passenger vehicles, the categories of roads and the coverage level of the integrated national road network in Romania. The additional revenue generated should be used for the maintenance of the road network and for new investments in sustainable transport.

The reform also aims at exceeding by at least 3 percentage points the minimum procurement targets of clean public vehicles set in the EU Clean Vehicles Directive.

The legislative package shall include measures to stimulate the use of zero-emission vehicles and fleet renewal programmes by individuals, private companies and public institutions, contributing to an increase of at least 100% in the number of zero-emission vehicles registered in Romania compared to the initial value in 2020, and the scrapping of 250 000 polluting vehicles (EURO 3 or below) by 30 June 2026.

An important element contributing to the sustainability of transport, in particular regarding air pollution reduction in urban areas and at country level, is the National Air Pollution Control Programme (NAPCP), which should have been submitted to the Commission by April 2019 pursuant to the Directive (EU) 2016/2284, and which the Romanian authorities indicated would be approved by 30 June 2022 1 .

The legislative package approved by the Romanian Parliament shall enter into force by 30 June 2024 and the full operationalisation of the charging system by 30 June 2026.

1.2 Alternative fuels infrastructure

The objective of this reform is to develop the alternative fuels infrastructure for road vehicles, in particular additional electric recharging points shall be installed to reach at least 30 000 recharging points by 30 June 2026.

The investment supported by the RRF consists of financing at least 15 283 electric recharging points, of which 14 200 points shall be high power recharging points (allowing for a transfer of electricity to an electric vehicle with a power greater than 22kW) and 1 083 points shall be normal power recharging points (allowing for a transfer of electricity to an electric vehicle with a power of less than or equal to 22kW, excluding devices with a power of less than or equal to 3,7kW).

As regards public accessibility, the 13 200 electric recharging points included in the Local Fund component shall be accessible to the public, in accordance with point 7 of Article 2 of Directive 2014/94/EU, and 2 083 points (83 points in the Local Fund component and 2 000 points in the Renovation Wave component) shall be semi-public/private recharging points.

The implementation of the reform shall be completed by 30 June 2026.

1.3 Road safety

The reform consists of a National Road Safety Strategy which shall include the following new measures:

1. Safety inspection: the technical assessment to determine road safety shall be optimised; implementation and development of the work of technical expertise on motor vehicles; setting up research and expert laboratories covering methodologies for monitoring, inspection and testing of vehicles throughout their lifetime;

2. Development of databases on road safety features at testing stations and vehicle repair units; development of the methodology for data collection and the primary data collection base for the analysis of key road safety performance indicators;

3. Introduction of more stringent speed limits on dangerous sections, and increase of enforcement of penalties for offences;

4. Strategy on the elimination of black spots (hotspots) on the network of national roads and motorways. The identified 267 safety black spots (hotspots) shall be eliminated by 2030, of which 129 supported by the Plan by 30 June 2026.

This reform shall be implemented via secondary legislation and related entry into force of enforcement measures. These measures are complementary to measures for road safety in urban areas included in the “Local Fund” component.

The implementation of the reform shall be completed by 31 December 2022.

1.4 Intelligent Transport Systems (ITS) strategy and legislative package

The objective of this reform is to develop the Intelligent Transport System to enhance the efficiency and safety of transport thanks to the digitalization of transport information.

The reform shall be implemented through the creation of a strategic document for Intelligent Transport Systems (ITS) which shall be approved by the Romanian Government. The ITS strategy shall be developed in conjunction with intermodal transport policies to serve the needs for efficient operation in multimodal nodes.

The implementation of the reform shall be completed by 30 June 2022.

1.5 Railways infrastructure development and rail traffic management

The objective of this reform is to strengthen the efficiency and competitiveness of the railways in Romania.

The strategy includes the modernisation and development objectives necessary to meet current and future mobility needs of people and goods, as well as identified requirements to increase the competitiveness of rail transport. At the same time, actions are planned to modernise the operation of the railway infrastructure in order to increase the performance of train traffic and to make its operation more efficient in order to limit the costs of rail transport.

The reform includes the ‘Strategy for the development of railway infrastructure 2021-2025’, approved at the end of 2020. This includes all maintenance, repairs and renewals necessary to rehabilitate the existing infrastructure and maintain it with the performance parameters necessary to support competitive rail transport at national level.

The measure shall include the Investment Plan 2020-2030, which shall prioritise rail investments on TEN-T and European Railway Traffic Management System (ERTMS) implementation, with a mechanism with clear indicators and criteria for prioritising rail infrastructure investments, as well as the institutional arrangements necessary to implement this mechanism and prepare investment projects.

The measure also includes a strategy and action plan for the deployment of ERTMS over 2025-2030, including: clear measures for the deployment and certification of ERTMS for the TEN-T Core network in the medium and long term (horizon 2030); responsible actors; budget estimates; administrative capacity measures at national level for responsible bodies to fully manage the certification process for all sectors considered during their construction in order to ensure full operationalisation.

The implementation of the reform shall be completed by 31 December 2025.

1.6 Shipping strategy and integration with other modes of transport

The objective of this reform is to further develop the waterborne (inland waterways and ports) transport in Romania, in line with the EU Strategy on Sustainable and Smart Mobility.

The measure includes the adoption of the Shipping strategy and the planning of intervention measures for the development of the sector, integrated with other modes of transport, as well as the development and approval of the action plan for the implementation of the strategy.

An analysis of the current situation of Romanian waterways (both inland and maritime) and the current situation of Romanian ports in terms of infrastructure shall be carried out, focusing on how to improve the environmental performance of ships and ports, taking into account EU-wide requirements such as Directive 2014/94/EU on the deployment of alternative fuels infrastructure. The strategy should consider measures to green all port operations (emissions, noise, pollution). In order to promote the navigability of the Danube in a sustainable way, an approach combining sustainable infrastructure, alternative fuels and digitalisation shall be developed, while taking into account the environmental sensitivity of the Danube. Proposals shall be made to amend the legal and institutional framework on how to manage waterborne infrastructure with the objectives of: integrating waterborne transport with other modes of transport, reducing the environmental impact of ports (maritime and inland) and shipping, drawing up plans to develop intermodal ports and increasing freight transport on the Danube by 15% by 2026 in a sustainable manner.

The implementation of the reform shall be completed by 30 June 2023.

Investment 1. Modernisation and renewal of railways infrastructure

The objective of this investment is to “modernise” the railways lines (including rail replacement, sleeper, substrate, electrification, consolidation/construction of bridges/bridges, ERTMS level 2) in line with TEN-T standards, and to “renew” (replacement of rail, traverse, broken stone, thus bringing the line to constructive speed) and electrify specific railways sections. In addition, eleven “quick wins” investments are foreseen to remove railways speed restrictions, increase train speed and increase railway safety. “Quick wins” projects shall be implemented to ensure the viability of rail transport along the TEN-T corridors until their upgrading. In total, the investment shall deliver 315km of upgraded railway lines with a capacity increase of 30% and ERTMS 2 installed; 110km electrified railway lines; 2 426km (2 163km single track “quick wins” projects + 263km renewal of lines) of renewed railways with 15% increased speed (reaching an average speed of minimum 100km/h).

The investment also includes a portfolio of 17 electronic centralisation projects to be implemented through the national recovery and resilience plan, which have a balanced spatial distribution in Romania and represent genuine railway sections supplying the TEN-T corridors. The 17 electronic centralisation projects shall solve capacity problems for 111 railway stations over a total length of more than 973km. As a consequence, it is estimated on increase of traffic volumes by 10-15%. In addition, the proposed electronic centralisation projects shall remove road bottlenecks from level crossings by significantly reducing waiting times.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the projects shall fully respect the results and conditions set by the Environmental Impact Assessment to be completed in accordance with Directive 2011/92/EU, as well as relevant assessments in the context of Directive 2000/60/EC and Council Directive 92/43/EEC, including the implementation of required mitigation measures. This shall ensure that the investment does not significantly or irreversibly impact affected water bodies and does not cause significant negative impacts on protected habitats and species.

The implementation of the investments shall be completed by 30 June 2026, with 50% of the works completed by 31 December 2024.

Investment 2. Railways rolling stock

The objective of this investment in new zero-emission and upgraded railways rolling stock is to increase the quality of public passenger transport services by rail and thus increasing the use of this type of sustainable transport with respect to road transport via modal shift.

New railways rolling stock shall be made available free of charge to rail passenger transport operators under public service contracts awarded in full compliance with Regulation (EC) No 1370/2007.

The implementation of the investment shall be completed by 30 June 2026.



D.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone/Target

Name

Qualitative

indicators
(for milestones)

Quantitative

indicators
(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit

of

measure

Base

line

Goal

Quarter

Year

59

Reform 1. Sustainable transport, decarbonisation and road safety /

Road decarbonisation in line with “polluter pays” principle

Milestone

Entry into force of the law for the implementation of a new distance-based charging system for heavy duty vehicles (trucks), and higher ownership taxes for most polluting passengers vehicles (cars/buses/coaches) based on the ‘polluter pays’ principle and green taxation principle

Provision in the law indicating the entry into force of the law

Q2

2023

Legislative package for the implementation of a new distance-based charging system for heavy duty vehicles (trucks), and higher ownership taxes for most polluting passengers vehicles (cars/buses/coaches) based on the ‘polluter pays’ principle and green taxation principle.

The new charging system for vehicles shall include:

-specific level of distance-based charges and clear criteria for charging heavy duty vehicles in line with the “polluter pays” principle;

-incentives for clean/low-emission vehicles and modes of transport;

-a system of deterrents for the use of most polluting vehicles including through fiscal/financial measures by means of the levels of ownership taxes for private passenger vehicles;

-using revenues to support road maintenance and new investment in sustainable transport;

-shifting of 10% of road traffic (passengers and goods) to rail between 2020 and 2026;

-timetable for the full operationalisation of the charging system by Q2-2026.

60

Reform 1. Sustainable transport, decarbonisation and road safety /

Road decarbonisation in line with “polluter pays” principle

Milestone

Entry into force of the law to boost the use of clean vehicles and fleet renewal programmes by domestic users, private companies and public institutions

Provision in the law indicating the entry into force of the law to boost the use of clean vehicles and fleet renewal programmes

Q2

2024

The law shall include financial and fiscal incentives to:

-increase the number of zero-emission vehicles by at least 100% by 2025 compared to the initial value in 2020;

-scrap at least 250 000 polluting vehicles (below EURO 3) between 2022 and Q2-2026.

61

Reform 1. Sustainable transport, decarbonisation and road safety /

Road decarbonisation in line with “polluter pays” principle

Target

New clean vehicles procured by public entities, at least 3% above the thresholds of the Clean Vehicles Directive

Percentage (%)

0

3

Q4

2025

The target refers to the percentage of clean vehicles out of the total number of vehicles purchased by public institutions. The target is to exceed by at least 3 percentage points the minimum procurement targets for the share of clean vehicles out of the total number of vehicles by category set out in the Clean Vehicles Directive (Directive (EU) 2019/1161 of the European Parliament and of the Council of 20 June 2019 amending Directive 2009/33/EC) during the period 2021-2025.

For clarity, this would mean a target of at least 21,7% for light duty vehicles, 9% for heavy duty vehicles and 27% for buses, given that the minimum procurement targets set out for Romania in the Clean Vehicles Directive are: 18,7% for light-duty vehicles, 6% for heavy-duty vehicles, 24% for buses.

62

Reform 1. Sustainable transport, decarbonisation and road safety /

Road decarbonisation in line with “polluter pays” principle

Target

Scrapped polluting motor vehicles (EURO 3 or below)

Number

0

250 000

Q2

2026

At least 250 000 polluting vehicles (with emission standards EURO 3 or below) older than 15 years old shall be scrapped between 2022 and mid-2026.

63

Reform 1. Sustainable transport, decarbonisation and road safety /

Road decarbonisation in line with “polluter pays” principle

Target

Increasing the number of zero-emission vehicles

Number

0

29 500

Q1

2026

The target refers to the increase in the number of zero-emission (electric and hydrogen, as defined in the Alternative Fuels Infrastructure Directive 2014/94/EU) vehicles (M1 -passenger cars, N1 - light commercial vehicles; N2 and N3 - heavy-duty vehicles, based on UNECE standards) registered in Romania between end 2020 and end 2025. Official data for the end of 2025 shall be reported by National Statistics Institute by the end of Q1 2026 to the European Alternative Fuels Observatory for monitoring purposes.

64

Reform 1. Sustainable transport, decarbonisation and road safety / Alternative fuels infrastructure

Target

Electric recharging points installed at national level

Number

1 836

30 000

Q2

2026

The national target for electrical recharging points for zero-emissions road vehicles shall consist of:

a.1 836 already existing recharging points

b.2 896 high power (at least 50kW) recharging points (of which 264 electric charging points are proposed through the motorway network development projects financed by the RRF) shall be installed on the network of national roads/motorways, in accordance with the C.N.A.I.R. strategy for the installation of recharging stations for electric vehicles on the TEN-T network in Romania, by 2030

c.13 283 recharging points financed by the “Local Fund” component by the Ministry of Development (13 200 high power charging points and 83 normal power charging points) broken down as follows:

-recharging points in municipalities of county residence: 4 000;

-recharging points in other municipalities: 1 876;

-recharging points in cities: 1 600;

-recharging points in rural areas: 5 724.

d.2 000 recharging points financed by the “Renovation Wave” component by the Ministry of Development (1 000 high power points and 1 000 normal power points);

e.at least 10 000 other high and normal-power recharging points financed from national sources, other EU funding (including Cohesion Policy) and/or private sources (including through concessions).

The location of these recharging points shall be in the areas established by the General Urban Plans/ Sustainable Urban Mobility Plans as areas for housing / mixed areas / service areas / commercial areas / transport areas (as close as possible to the inhabitants - to limit travel needs). These recharging points shall also be located in multimodal points to encourage commuters to use public transport.

The recharging points shall be installed:

85-95% in publicly accessible/semi-public areas;

5-15% in private buildings.

65

Reform 1. Sustainable transport, decarbonisation and road safety /

Road safety

Milestone

Adoption of the National Road Safety Strategy

Adoption of the Strategy by Government Decision (secondary legislation) and start of its implementation

Q2

2022

The National Road Safety Strategy 2021-2030 shall implement EU rules and guidelines as set out in the EU Road Safety Policy Framework 2021-2030 and the “Vision Zero”, with the objective to reduce the number of road fatalities by 2050 to close to zero. As an intermediate target, Romania is taking on the EU target of reducing the number of victims (deaths and serious injured) by 50% from 2019 baseline to 2030.

The strategy shall be addressed in an integrated and multidisciplinary way to all actors involved in road safety and shall include:

-enforcement of the rules governing compliance, higher penalties for breaches of the law;

-reduction of speed limits in specific areas or roads depending on accidents data/risk analysis and best practices at EU level, introduction of speed management system and mandatory safety features, revision of traffic rules including priority for vulnerable users,

-reduction of black/hot spots in both urban and inter-urban environments, including a specific investment action plan to reduce the number of black/hot spots by 129 by Q2-2026 compared to the initial 267 black/hot spots in 2021;

-phasing out from the national register of old/deficient vehicles, increased safety inspections and checks;

-education and training, information campaigns;

-integration of the legislative system and reform of the Intelligent Transport Systems (ITS).

A strategic document for Intelligent Transport Systems (ITS) shall be approved by the Romanian government. The ITS strategy shall be developed in conjunction with intermodal transport policies to serve the needs for efficient operation in multimodal nodes.

The entity responsible for the monitoring of the Road safety strategy implementation and the Key Performance Indicators shall be clearly defined and operationalised.

66

Reform 1. Sustainable transport, decarbonisation and road safety /

Road safety

Milestone

Entry into force of the road safety law - legislation on monitoring, enforcement and sanctions on road safety offences

Provision in the law indicating the entry into force of the law on road safety

Q4

2022

The following legislative changes promoting road safety shall be introduced:

-enforcement of the rules governing compliance, higher penalties for breaches of the law;

-monitoring of road offences by automatic equipment (video cameras, sensors);

-reduction of speed limits in specific areas or roads depending on accidents data/risk analysis and best practices at EU level, introduction of speed management system and mandatory safety features, revision of traffic rules including priority for vulnerable users;

-phasing out from the national register of old/deficient vehicles, increased safety inspections and checks.

The overall goal for road safety shall aim for a 50% reduction of fatalities in road accidents by 2030 vs 2019, in line with the EU Road Safety Policy Framework 2021-2030.

67

Reform 1. Sustainable transport, decarbonisation and road safety / Road safety

Target

Installed and functional equipment to increase speed enforcement and compliance with road safety rules

Number

0

1 800

Q4

2024

1 000 speed check systems, 300 mobile radars and 500 cameras shall be installed and functional.

Speed check systems are road safety infrastructure consisting of vehicle speed limitation constructions. Mobile radars are used by the Road Police depending on the sectors with most recorded speed violations and cameras serve as automatic recording of road traffic offences.

They shall be positioned as a priority in the identified 267 black points/hot spots.

68

Reform 1. Sustainable transport, decarbonisation and road safety /
Road safety

Target

Reducing the number of road accident victims (seriously injured and deceased people) by 25% compared to the 2019 baseline

Percentage (%)

100

75

Q1

2026

The target refers to a minimum 25% reduction in the annual number of victims (seriously injured and deceased people) in 2025 vs 2019 baseline in road accidents across the country, thanks to the road safety reform, the comprehensive action plan and road safety investments supported under the Romanian recovery and resilience plan. Official data for the end of 2025 shall be reported by the National Statistics Institute by the end of Q1 2026.

69

Reform 1. Sustainable transport, decarbonisation and road safety /
Railway infrastructure development and rail traffic management

Milestone

Adoption of the strategy for the development of railway infrastructure 2021-2025 and application of the action plan

Adoption of the strategy for the development of the railway infrastructure by the Government Decision no. 985/2020 (secondary legislation), adoption of the action plan and start of implementation

Q4

2021

The approved strategy and action plan shall identify responsible authorities/actors, deadlines for implementation, financial allocations and indicators. At the same time, the Minister of Transport and Infrastructure together with C.N.C.F. C.F.R. SA shall define a mechanism with clear indicators and criteria for prioritising rail infrastructure investments, as well as the institutional arrangements necessary for the implementation of this mechanism and the preparation of investment projects.

Adoption of the action plan for the development of railway infrastructure 2021-2025 which shall include:

-a system with indicators for prioritising investments;

-a structure responsible for project preparation;

-measures to increase rail freight traffic by a minimum of 25% in 2026 compared to 2020;

-dedicated measures in view of reaching a target of an increase in the number of railways passengers by an average of 25% compared with 2021 baseline;

-measures to increase the use of newly-acquired rolling stock;

-measures to shift passengers from buses/minibuses to railways on shuttle routes.

The Ministry of Transport and Infrastructure shall also approve the Investment Plan for the development of transport infrastructure for the period 2020-2030, which shall prioritise rail investments and ERTMS operationalization according to the Recovery and Resilience Plan, thus updating the strategy for the development of railway infrastructure in the light of all available sources of financing.

70

Reform 1. Sustainable transport, decarbonisation and road safety /
Railway infrastructure development and rail traffic management

Milestone

Publication and implementation of the European Railway Traffic Management System (ERTMS) national action plan

Adoption and implementation of the action plan

Q4

2025

The milestone refers to the implementation of a new ERTMS action plan by 2025.

The action plan shall include:

-clear steps for ERTMS deployment and certification for TEN-T Core network, in the medium (2025) and long term (horizon 2030);

-responsible actors;

-budgetary estimations;

-administrative capacity measures at national level for the notified bodies in order to fully administer the ERTMS certification process for all envisaged sectors in the timeframe of their construction to ensure full operationalization.

71

Reform 1. Sustainable transport, decarbonisation and road safety /

Shipping strategy

Milestone

Adoption of the Shipping strategy

Adoption of the Shipping strategy by the Government

Q2

2023

Development and approval of the Shipping strategy.

Development and approval of the action plan for the implementation of the Shipping strategy.

Development and approval of a Vessel Investment Priority Guide.

The Shipping strategy shall include:

analysis of the current situation of Romanian waterways (both Inland Water-Ways and maritime) and the state of play of Romanian ports in terms of infrastructure; analysis of projects in the Romanian shipping sector; analysis of future trends and scenarios for 2027, 2030, 2035 and 2050; The analysis shall focus on how to improve the environmental performance of vessels and ports, taking into account EU level requirements, like the Directive 2014/94/EU on the deployment of alternative fuels infrastructure; while importance should be given to the provision of green fuels to vessels (through Onshore Power Supply in particular), the strategy shall consider measures to green all port operations (emissions, noise, pollution). To foster the navigability of the Danube in a sustainable way, an approach that combines sustainable infrastructure, alternative fuels and digitalisation is needed, while taking into account of the environmental sensitivity of the Danube.

Proposals shall be made to amend the legal and institutional framework on how to manage the shipping infrastructure with the objectives to: integrate water transport with other modes of transport, prepare development plans of intermodal ports and increase freight transport on the Danube by 15% between end 2022 and end 2026 in a sustainable manner.

72

Investment 1. Modernisation and renewal of railways infrastructure

Milestone

Signature of contracts for 50% of the works related to modernisation, upgrade and renewal of railway infrastructure

 

Signature of contracts

Q4

2022

The target refers to the award of contracts with winning companies equivalent to 50% of the works for the construction and supervision of railways as follows:

-Modernisation, electrification of railway tracks, ERTMS on the section Arad-Timișoara - Caransebeş;

-Upgrade, electrification of railway tracks, ERTMS on the section Cluj-Napoca - Episcopia Bihor;

-Electrification and renewal of railway tracks: Constanta-Mangalia and Videle-Giurgiu.

The renewal investments cover the following lines:

·Bucharest — Pitești — TEN-T Comprehensive;

·Reșița — Voiteni — Link to TEN-T Core Corridor.

The investment shall also include a series of “Quick Wins” projects to remove speed restrictions and limitations on the following sections:

·Bucharest — Craiova;

·Arad — Oradea;

·Sibiu — Mică Copșa;

·Oradea — Satu Mare — Halmeu;

·Apahida — Dej — Baia Mare — Satu Mare;

·Dej — Beclean — Ilva Mica

·Adjud — Siculeni;

·Filiași — Tg.Jiu — Petroșani — Simeria;

·Pitești — Slatina — Craiova;

·Coșlariu — Teiuș — Cluj-Napoca;

·Tecuci — Bârlad — Vaslui — Iași.

The tender process shall be carried out in accordance with L98/2016 and its subsequent amendments, which transposed the relevant European Directive 2014/24/EU.

The awards of contracts shall follow open and competitive tenders and the approval of relevant permits, with Environmental Impact Assessment (including assessments necessary under the Water Framework Directive) and Appropriate Assessment opinions (part of the Habitats Directive) issued and incorporated in the design of the investments, and ensure compliance with the Do Not Significant Harm Technical Guidance (2021/C58/01).

73

Investment 1. Modernisation and renewal of railways infrastructure

Milestone

Signature of contracts for 100% of the works related to modernisation, upgrade and renewal of railway infrastructure

Signature of contracts

Q4

2023

The target refers to the signature of contracts with winning companies for the:

-Modernisation, electrification of railway tracks, ERTMS on the section Arad-Timișoara - Caransebeş;

-Upgrade, electrification of railway tracks, ERTMS on the section Cluj-Napoca - Episcopia Bihor;

-Electrification and renewal of railway tracks: Constanta-Mangalia and Videle-Giurgiu.

The renewal investments cover the following lines:

·Bucharest — Pitești — TEN-T Comprehensive;

·Reșița — Voiteni — Link to TEN-T Core Corridor.

The investment shall also include “ Quick Wins” projects to remove speed restrictions and limitations on the following sections:

·Bucharest — Craiova;

·Arad — Oradea;

·Sibiu — Mică Copșa;

·Oradea — Satu Mare — Halmeu;

·Apahida — Dej — Baia Mare — Satu Mare;

·Dej — Beclean — Ilva Mica

·Adjud — Siculeni;

·Filiași — Tg.Jiu — Petroșani — Simeria;

·Pitești — Slatina — Craiova;

·Coșlariu — Teiuș — Cluj-Napoca;

·Tecuci — Bârlad — Vaslui — Iași.

The tender process shall be carried out in accordance with L98/2016 and its subsequent amendments, which transposed the relevant European Directive 2014/24/EU.

The awards of contracts shall follow open and competitive tenders and the approval of relevant permits, with Environmental Impact Assessment (including assessments necessary under the Water Framework Directive) and Appropriate Assessment opinions (part of the Habitats Directive) issued and incorporated in the design of the investments, and ensure compliance with the Do Not Significant Harm Technical Guidance (2021/C58/01).

74

Investment 1. Modernisation and renewal of railways infrastructure

Target

Completion of the works for at least 50% of the total railways infrastructure investments.

Percentage (%)

 

0

50

Q4

2024

The target refers to the intermediate completion of 50% of the works for railways infrastructure investments, measured in percentage of works completed (certified by supervision report) for the:

-Modernisation, electrification, ERTMS on the Arad-Timișoara- Caransebeş section;

-Upgrade, electrification, ERTMS on section Cluj-Napoca - Episcopia Bihor;

-Electrification and renewal of railway tracks: Constanta-Mangalia and Videle-Giurgiu.

The renewal investments shall cover the following lines:

·Bucharest — Pitești — TEN-T Comprehensive;

·Reșița — Voiteni — Link to TEN-T Core Corridor.

The investment shall also include “Quick Wins” projects to remove restrictions and speed limits on the following sections:

·Bucharest — Craiova;

·Arad — Oradea;

·Sibiu — Mică Copșa;

·Oradea — Satu Mare — Halmeu;

·Apahida — Dej — Baia Mare — Satu Mare;

·Dej — Beclean — Ilva Mica;

·Adjud — Siculeni;

·Filiași — Tg.Jiu — Petroșani — Simeria;

·Pitești — Slatina — Craiova;

·Coșlariu — Teiuș — Cluj-Napoca;

·Tecuci — Bârlad — Vaslui — Iași.

75

Investment 1. Modernisation and renewal of railways infrastructure

Target

Kilometres of new/upgraded operational railway infrastructure

Kilometres (km)

0

2 851

Q2

2026

The target includes:

-315km of upgraded railway lines with a capacity increase of 30% and ERTMS level 2 installed;

-110km electrified and renewed railway lines with 15% increased speed (average speed to reach min. 100km/h);

-2 426km (2 163km total length of the tracks “quick wins” projects + 198km renewal of Bucharest - Pitești section + 65km renewal of Reșita - Voiteni section) of renewed railways with 15% increased speed (average speed to reach min. 100km/h).

The target refers to the number of km of new and upgraded railways which shall be completed with notification of acceptance from the contracting authority and in operation, in line with TEN-T standards and TSIs:

-Modernisation, electrification, ERTMS on section Arad-Timișoara- Caransebeş;

-Upgrade, electrification, ERTMS on section Cluj-Episcopia Bihor.

-For the two projects above the works include full ERTMS as on-track installations and the required certification for European railway interoperability to be completed at the same time as the investment itself.

-Renewal and Electrification: Constanta-Mangalia and Videle-Giurgiu.

The renovation process of investments covers the following lines:

·Bucharest — Pitești — TEN-T Comprehensive;

·Reșița — Voiteni — Link to TEN-T Core Corridor.

The investment shall include “Quick Wins” projects to remove the speed restrictions and limitations on the following sections:

·Bucharest — Craiova;

·Arad — Oradea;

·Sibiu — Mică Copșa;

·Oradea — Satu Mare — Halmeu;

·Apahida — Dej — Baia Mare — Satu Mare;

·Dej — Beclean — Ilva Mica;

·Adjud — Siculeni;

·Filiași — Tg.Jiu — Petroșani — Simeria;

·Pitești — Slatina — Craiova;

·Coșlariu — Teiuș — Cluj-Napoca;

·Tecuci — Bârlad — Vaslui — Iași.

Evidence shall be provided of compliance with authorization procedures under the Environmental Impact Assessment in accordance with the Directive 2011/92/EU, to ensure compliance with the Do Not Significant Harm Technical Guidance (2021/C58/01). Good ecological status/potential of the relevant water bodies in accordance with the requirements of the Water Framework Directive 2000/60/EC shall be achieved / maintained and evidenced by latest relevant supporting data.

ERTMS trackside system should be certified for European interoperability.

76

Investment 2. Railways rolling stock

Milestone

Signature of contracts following open and competitive tenders.

Signature of contracts

Q2

2023

The milestone refers to the contracts signed between the Ministry of Transport and Infrastructure and the winning companies for the delivery of rolling stock: 20 EMU (Electric Multiple Units - RE-IR - Electric Interregio – long distance trains, with 6 units), 12 H-EMU (Hydrogen Electric Multiple Units, with 3+1 units), modernised zero-emission rolling stock: 55 locomotives and 139 wagons, 16 new electric locomotives with 4 axles with ERTMS/ European Train Control System (ETCS) and conversion of 20 diesel hydraulic shunting locomotives in plug-in electric locomotives), following open and competitive tenders.

77

Investment 2. Railways rolling stock

Target

New electric rolling stock in operation

Number

0

262

Q2

2026

Entry into operation of:

-    20 EMU (Electric Multiple Units - RE-IR - Electric Interregio – long distance trains, with 6 units) and 12 H-EMU (Hydrogen Electric Multiple Units, with 3+1 units)

-    55 modernized electric locomotives capable of speed of 160km/h and towing of trains up to 16 wagons;

-    16 new electric locomotives with 4 axes with ERTMS system capable of reaching a speed of 160km/h and towing of trains up to 16 wagons;

-    20 shunting locomotives upgraded from diesel to electric power and plugin;

-    139 modernised (30 sleeping cars, couchette cars, restaurant and bistro wagons and 109 class wagons for InterCity, InterRegio and Regio trains).

In order to maximise the efficiency of the investment, all newly purchased rolling stock shall be used on the TEN-T network with priority on upgraded lines.

D.3.    Description of the reforms and investments for the loan

Reform 2. Performance-based quality management in transport - Improving institutional capacity and corporate governance

The objective of this reform is to develop the quality of transport investments and services by improving the corporate governance and the performance of the State-Owned Enterprises operating in the transport sector, notably for those in charge of roads, railways and metro.

A new entity C.N.I.R. S.A. (National Company for Road Infrastructure) has been created by legislation entered into force in April 2021 to manage the investments in road sector, with the responsibility to ensure the implementation of the projects from the technical and economic documentation phase, tendering procedures, effective construction to reception. It is expected that this shall allow to focus a specific entity (C.N.I.R) on the efficient management and prioritization of the new road investments, while the other entity (C.N.A.I.R) shall focus on the management and maintenance of the existing road network. There shall be a transitional period of 3 years during which C.N.A.I.R. (National Company for Road Infrastructure Administration) and C.N.I.R. shall run investment projects in parallel, until the full operationalisation of C.N.I.R.

The selection and appointment of the members of the board of directors of the state-owned enterprises in the transport sector shall be improved with transparent and competitive procedures, and remuneration shall be in line with Key Performance Indicators (KPIs).

Based on an independent assessment of financial and operational performance in line with OECD (Organisation for Economic Cooperation and Development) standards, recommendations for improving the performance of C.N.A.I.R., C.N.I.R., C.F.R. (Compania Naţională de Căi Ferate), C.F.R. Călători and Metrorex shall be implemented. In order to carry out the independent evaluation, the Ministry of Transport and Infrastructure shall contract/select through competitive public procurement an International Financing Institution or an international auditing company, recognised for the competence and expertise in state-owned enterprises performance. The recommendations from this independent assessment shall be implemented by 30 June 2023.

This reform shall ensure a balanced representation of women in all reform processes and in the organisational structures specific to its implementation. It shall also aim to improve the representation of women in decision-making positions of companies undergoing this reform.

The implementation of the reform shall be completed by 30 June 2023.

Investment 3. Development of sustainable road infrastructure on TEN-T network, road charging, traffic management and road safety

The objective of this investment is to improve the quality and efficiency of road infrastructure on specific sections of the TEN-T network, and to foster economic and social cohesion in particular in less developed and remote regions.

The new motorways shall be built for a total of 429km, as follows:

• A7 — Ploiești-Pașcani (319km);

• A8 — Târgu-Mureș-Miercurea Nirajului and Leghin- Târgu Neamț (Moțca) (59km);

• A1 — Marginea-Holdea (9km);

• A3 — Nădășelu-Poarta Sălajului (42km).

All motorway sectors shall be built in accordance with TEN-T standards, shall comply with and include in the design the Environmental Impact Assessment requirements, opinions and conditions of the appropriate assessment (part of the Habitats Directive), and include new technical regulations to limit pollution, improve safety and promote traffic efficiency.

The construction of new highways shall entail the following features: mandatory technical standards in line with TEN-T requirements, construction of electric recharging stations, construction of secure parking areas, implementation of digitalisation solutions that serve to make traffic more efficient and safer, installation of forest curtains and works to improve road safety.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the “Do no significant harm” Technical Guidance (2021/C58/01). All motorway sections shall be built in line with TEN-T standards, comply with the requirements of the Environmental Impact Assessment, include the Appropriate Assessment (part of Habitats Directive) in the design, and include new technical features to limit pollution and digitise transport (forest curtains, sound-absorbing panels, electric recharging stations, Intelligent Transport System, road safety). “Do not significant harm” compliance shall be ensured through the following accompanying measures:

-the coupling of the road investment with the installation of at least 30 000 electric charging points, as foreseen in Reform 1 of this component, Investment 1 and 2 of component 10 (“Local Fund”) and Investment 1 of component 5 (“Renovation Wave”);

-Reform 1 of this component, which introduces: i) distance-based charging for heavy goods vehicles (lorries and other types of lorries); ii) local taxation measures for the ownership of the most polluting passenger vehicles; and (iii) the increase by 29 500 of zero-emission electric vehicles registered in Romania between 2020 and 2025;

-Reform 1 of this component, which provides financial and fiscal incentives to increase the number of zero- and low-emission vehicles and to scrap at least 250 000 polluting vehicles (EURO 3 or below);

-Reform 1 of this component, which covers a strategy for the development of railway infrastructure and a shipping strategy and integration with other modes of transport, which support the modal shift from road towards rail and/or inland waterways:

-Reform 4 of component 10 “Local Fund”, which include measures to stimulate the renewal of the public transport fleet with clean vehicles, increase road safety and secure minimum national quality standards in urban and rural areas.

The implementation of the investment shall be completed by 30 June 2026.

Investment 4. Development of the underground transport network in the municipalities of Bucharest and Cluj-Napoca

The objective of this investment is to extend the underground transport network in the municipality of Bucharest by 5,2 kilometres, and to build 7,5 kilometres of underground transport network in Cluj-Napoca. The projects shall contribute to increasing the use of clean public transport, thereby reducing air pollution, emissions and congestion in these urban areas. The investment shall include facilities for persons with reduced mobility and shall be accessible to visually impaired persons.

The implementation of the investment shall be completed by 30 June 2026.

D.4.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq. Num.

Related Measure (Reform or Investment)

Milestone/Target

Name

Qualitative

indicators
(for milestones)

Quantitative

indicators
(for targets)

Indicative timeline

for completion

Description of each milestone and target

Unit

of

measure

Base

line

Goal

Quarter

Year

78

R2. Performance-based quality management in transport - Improving institutional capacity and corporate governance 

Milestone

Entry into force of the Law no. 50/2021 for the approval of the Emergency Ordinance no. 55/2016 on the reorganization of the National Company of Highways and National Roads in Romania - S.A. (C.N.A.I.R.) and the establishment of the National Road Investment Company - S.A. (C.N.I.R.)

Provision in the law indicating the entry into force of the Law no 50/2021

Q2

2021

The entry into force of the legislation on the reform of the C.N.A.I.R. and the creation of a new Road Investment Project Management Company (C.N.I.R.). The law was approved by the Parliament and entered into force in April 2021. Along with the legislation (primary and secondary), the entire regulatory package (instructions, board decisions, management contracts signed with the management teams) shall include:

-Clear performance indicators, aligned with the Boards’ mandates and KPIs, sanctions and incentives in case of non-compliance, to assess the financial performance (revenue, profitability, involvement of State’s budget) and the performance of the service provided (e.g. via user satisfaction survey) for both companies;

-Corporate governance standards in line with the O.E.C.D. framework (professional Boards selected through an open, competitive and transparent procedure).

Primary and secondary legislation must be amended to make the company’s activities more effective and to reorient C.N.A.I.R.’s powers and institutional mechanisms.

Specifically, C.N.A.I.R. shall retain the current tasks in terms of road maintenance as well as existing investments both at the level of major and minor projects. There shall be a transitional period of 3 years during which C.N.A.I.R. and C.N.I.R. shall run investment projects in parallel until C.N.I.R. is fully operational and all major investment projects shall be in the management of the C.N.I.R.

79

R2. Performance-based quality management in transport - Improving institutional capacity and corporate governance

Milestone

Selection and appointment of members of the Board of Directors of C.N.A.I.R., C.N.I.R, C.F.R., Metrorex, C.F.R. Călători.

Mandates validated by General stakeholder assembly and Ministerial Order

Q4

2022

The selection and appointment of members of the Board of Directors of State-Owned Enterprises in the transport sector (C.N.A.I.R., C.N.I.R, C.F.R., Metrorex, C.F.R. Călători) shall be made:

-on the basis of a transparent and competitive procedure,

-with a duration of the mandate of 4 years to ensure that medium and longterm efficiency plans are implemented;

-with remuneration of Board members based on performance indicators (KPIs) linked to long-term financial sustainability (KPI relevant to the profile of each company) and performance of the service provided (e.g. on the basis of a customer satisfaction survey) by each company;

-in compliance with good governance principles in line with the reform on State-Owned-Enterprises amending Law 111/2016.

80

R2. Performance-based quality management in transport - Improving institutional capacity and corporate governance

Milestone

Implementation of the main recommendations to increase the financial and operational performance of C.N.A.I.R., C.N.I.R., C.F.R., C.F.R. Călători and Metrorex

The main recommendations are implemented

Q2

2023

After the completion of an independent evaluation of the financial and operational performance of C.N.A.I.R, C.N.I.R., C.F.R. (Compania Naţională de Căi Ferate), C.F.R. Călători and Metrorex in line with OECD standards, the main recommendations of the evaluation shall be implemented.

For the independent evaluation, the Ministry of Transport and Infrastructure shall select through competitive tendering procedures an International Financing Institution or an international audit company, recognised for its competence and expertise in SOEs performance. An independent evaluation of the financial and operational performance of C.N.A.I.R, C.F.R., C.F.R. Călători and Metrorex in line with OECD standards shall be conducted. The main recommendations of the evaluation shall be implemented.

81

R2. Performance-based quality management in transport - Improving institutional capacity and corporate governance

Target

Improved railways performance in terms of trains punctuality

Percentage (%)

0

20

Q4

2025

The target shall be at least a 20% reduction in the percentage of trains that are late more than 30 minutes from the baseline of 2020 to 2025, based on official published statistics.

An analysis shall be completed by the end of 2021 to quantify the baseline for the number of trains with delays.

82

I3. Development of sustainable road infrastructure on TEN-T network, road charging, traffic management and road safety

Milestone

Signature of contracts for 100% of the works, following open and competitive tenders and relevant permits obtained, with Environmental Impact Assessment and Appropriate Assessment (part of the Habitats Directive) opinions issued and incorporated in the design of the investments

Signature of contracts

Q4

2023

The milestone refers to the signature of contracts for the construction and supervision of 100% of the works of the motorway sections on the TEN-T network of A1, A3, A7 and A8:

• A7 - Ploiesti-Pascani;

• A8 - Târgu-Mures-Miercurea Nirajului and Leghin- Târgu Neamț (Moțca);

• A1 - Marginea-Holdea;

• A3 - Nădășelu-Poarta Sălajului.

In order to comply with the Do Not Significant Harm Technical Guidance (2021/C58/01), all motorway sections shall be built in line with TEN-T standards, comply with Environmental Impact Assessment requirements and include the Appropriate Assessment (part of Habitats Directive) in the design, and include new technical features to limit pollution and digitise transport (forest curtains, sound-absorbing panels, electric charging stations, Intelligent Transport System, road safety) in line with relevant regulations.

The tender process shall be open and competitive and carried out in accordance with Law 98/2016 and its subsequent amendments, which transposed the relevant European Directive 2014/24/EU.

83

I3. Development of sustainable road infrastructure on TEN-T network, road charging, traffic management and road safety

Target

Construction of new roads, 50% of works completed

Percentage (%)

0

50

Q4

2024

The target refers to the completion of at least 50% of the works (certified by supervision report) of road infrastructure located on the TEN-T network:

• A7 - Ploiești-Pașcani (319km);

• A8 - Târgu-Mureș-Miercurea Nirajului and Leghin- Tg. Neamț (Moțca) (59km);

• A1 - Marginea-Holdea (9km);

• A3 - Nădășelu-Poarta Sălajului (42km).

The motorways shall be built according to technical specifications, fully including all EIA results, Appropriate Assessment (part of Habitats Directive) opinions and conditions and comply with the Do Not Significant Harm Technical Guidance (2021/C58/01).

84

I3. Development of sustainable road infrastructure on TEN-T network, road charging, traffic management and road safety

Target

Construction of new roads completed (with TEN-T standards)

Kilometres (km)

910

1 339

Q2

2026

The target refers to the number of km of road infrastructure built and entered into operation (total 429km) located on the TEN-T network:

·A7 - Ploiești-Pașcani (319km);

·A8 - Târgu-Mureș-Miercurea Nirajului and Leghin – Târgu Neamț (Moțca) (59km);

·A1 - Marginea-Holdea (9km);

·A3 - Nădășelu-Poarta Sălajului (42km).

The baseline of 910km of motorway represents the number of km completed and operational at the end of 2020 according to National Institute of Statistics data.

Number of electric recharging points in spaces built on the new road infrastructure: 264 (average of 5 recharging points/station in 52 recharging stations).

Intelligent Traffic System (ITS): 434km of motorways equipped with the new ITS according to relevant Regulations.

Forest curtains: 625ha of specific trees as described in the Do Not Significant Harm assessment for this measure.

Safe and secured car parking spots along the motorways: 18.

The motorways shall be built according to technical specifications, fully including all EIA results, Appropriate Assessment (part of Habitats Directive) opinions and conditions, in order to comply with the Do Not Significant Harm Technical Guidance (2021/C58/01).

85

I3. Development of sustainable road infrastructure on TEN-T network, road charging, traffic management and road safety

Target

Road safety black/hot spots removed

Number

0

129

Q2

2026

The existing 267 road safety black/hot spots in 2021 shall be reduced by 129.

Measures to remove the 129 road safety black/hot spots include:

-location of road walls with rolls, concrete or cable (using sustainable materials in line with circular economy), depending on the type of road, in order to improve road safety in areas with a high risk of road accidents;

-measures to mitigate the consequences of collisions with rigid objects in the road area by locating impact attenuators equipped with an accident detection and traffic monitoring system;

-purchase of systems to protect workers undertaking emergency interventions to motorway infrastructure and national roads open to international traffic, type “Truck Mounted attenuator”;

-Road Safety Campaign targeting vulnerable categories of road users;

-increasing road safety at night by signalling dangerous road sections with green energy light sources;

-diversion of traffic at night by routing poles, light buttons, including signs dedicated to the protection of road users from wild animals;

-increasing road safety by illuminating dangerous sectors, and optimising consumption of existing lighting systems by equipping them with a remote management system;

-alternative journeys to increase road safety and remove traffic jams, development of pedestrian footpaths;

-pilot project: ensuring a high level of road safety on a motorway section allowing autonomous vehicles to circulate.

The identification of road safety black/hot spots is carried out by the Romanian Police, which shall also certify their elimination as a result of the work carried out by C.N.A.I.R.

86

I4. Development of the underground transport network in the municipalities of Bucharest and Cluj-Napoca

Milestone

Signature of contracts for 50% of the works, following open and competitive tenders and relevant permits obtained.

Signature of contracts

Q4

2022

The contracts between the Ministry of Transport/City-Hall of Cluj-Napoca and the winning companies shall be signed, following open and competitive tender for the procurement of 50% of the works of new metro lines in Bucharest and Cluj-Napoca, as follows:

·M4 Bucharest: North Filaret Station (6 stations), length 5,2km;

·M1 Cluj-Napoca: SF. Maria — United Europe (9 stations), length 7,5km.

The works included in this investment are: structural resistance work, stations, interstations, tunnels, galleries, other constructions.

The tender process shall be carried out in accordance with L98/2016 and its subsequent amendments, which transposed the relevant European Directive 2014/24/EU.

The technical specifications of the tender shall fully incorporate any result and condition from the Environmental Impact Assessment if needed.

87

I4. Development of the underground transport network in the municipalities of Bucharest and Cluj-Napoca

Milestone

Signature of contracts for 100% of the works, following open and competitive tenders and relevant permits obtained.

Signature of contracts

Q4

2023

The contracts between the Ministry of Transport/City-Hall of Cluj-Napoca and the winning companies shall be signed, following open and competitive tender for the procurement of 100% of the works, including structural resistance works, stations, interstations, tunnels, galleries, other constructions, for the new metro lines:

·M4 Bucharest: North Filaret Station (6 stations), length 5,2km;

·M1 Cluj-Napoca: SF. Maria - United Europe (9 stations), length 7,5km.

The works included in this investment are: structural resistance work; stations, interstations, tunnels, galleries, other constructions.

The tender process shall be carried out in accordance with L98/2016 and its subsequent amendments, which transposed the relevant European Directive 2014/24/EU.

Technical specifications of the tender shall fully incorporate any result and condition from the Environmental Impact Assessment if needed.

88

I4. Development of the underground transport network in the municipalities of Bucharest and Cluj-Napoca

Target

Construction of 50% of the metro lines investments in Bucharest and Cluj-Napoca

Percentage (%)

0

50

Q4

2024

Completion of at least 50% of the works (certified by supervision report) for new metro lines in Bucharest and Cluj-Napoca, including structural resistance works, stations, interstations, tunnels, galleries, other constructions, as follows:

·M4 Bucharest: North Station - Filaret;

·M1 Cluj-Napoca: SF. Maria - United Europe.

89

I4. Development of the underground transport network in the municipalities of Bucharest and Cluj-Napoca

Target

Kilometers of new metro lines in Bucharest and Cluj-Napoca completed

Kilometres (km)

0

12,7

Q2

2026

Completion of the works on the main structure (structural resistance works stations, inter-stations, tunnels, galleries, other constructions) of new metro lines in Bucharest and Cluj-Napoca, for a total length of 12,7km as follows:

·M4: Bucharest - Section 1: North Station - Filaret (6 stations), length 5,2km;

·M1: Cluj-Napoca - Section 1: SF. Maria - United Europe (9 stations), length 7,5km.

E.COMPONENT 5: Renovation wave

In its National Long-Term Renovation Strategy Romania estimates the need to invest EUR 12,8 billion in building renovations to achieve a reduction of 0,83 Mtoe in the final energy consumption in 2030 compared to the baseline scenario.

The objective of the component is to increase the speed and the quality of the energy renovations both in the public and in the private sector, while addressing the challenge of heritage protection. The reforms and investments in this component aim to achieve reductions of primary energy consumption and final energy consumption in line with the objectives for 2030 set out in the National Long-Term Renovation Strategy.

These investments and reforms shall address Romania’s country-specific recommendations of the past two years to “focus investment-related economic policy on […] low carbon and energy efficiency” (country-specific recommendation 4, 2019) and to “focus on investments for the green […] transition, in particular on clean and efficient production and use of energy” (country-specific recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

E.1.    Description of the reforms and investments for the loan

Reform 1. Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings

The reform shall simplify the legislative and regulatory framework concerning building renovation activities, to accelerate the green transition. The reform shall cover the following sub-reforms:

-R1.a. Codification of legislation supporting the implementation of investments in the transition to green buildings. The Spatial planning, Urban Planning and Construction Code shall link, simplify, and codify in a single legislative act at least 10 legislative acts in the fields of spatial planning, urbanism and construction. The adoption and entry into force of the Code is included in Reform 5 of Component 10 Local Fund by 31 December 2022. The objective of this reform element is to reduce by at least 50 % the time required for the issuance of building permits by the relevant entities, compared to 2020, from 270 days to 135 days for the entire process of obtaining building permits. The Code shall also integrate the key principles of the European Green Deal, such as promoting resource efficiency, nature-based solutions, biodiversity corridors, and circular economy. It shall also promote the digitalisation of the authorisation processes. The implementation of the sub-reform shall be completed by 31 June 2025.

-R1.b. Optimisation of the legislative and regulatory framework to support the implementation of investments in the transition to green buildings. As regards the legislative framework, the Government Emergency Order No 18/2009 on the multiannual national programme for improving the energy performance of residential buildings shall be amended to increase the level of ambition of energy renovations to at least 30% primary energy savings up to 60% primary energy savings for residential buildings. As regards the new technical regulatory framework, it shall include the following guidelines adopted and operational: Nearly Zero Energy Building (NZEB) guidelines, guidelines to facilitate the implementation of the Building Information Modelling (BIM), and a methodology for non-invasive approach to energy and resource efficiency on historical buildings. The new regulatory framework aims to provide guidance on the technical implementation of NZEB requirements, to support the central public administration authorities responsible for the monitoring of the implementation of the NZEB requirements; and to establish standards to achieve energy and resource efficiency savings for historical buildings without affecting their architectural and historical value. The implementation of the sub-reform shall be completed by 31 December 2022.

Reform 2. Strategic, legislative and procedural framework to support seismic resilience of the buildings stock

The reform shall cover the following sub-reforms:

-R2.a. The adoption of a National Seismic Risk Reduction Strategy. The Strategy shall include an action plan with specific objectives to reduce the seismic risk in the short, medium and long term (2030, 2040 and 2050) for the different types of vulnerable buildings, including raising public awareness and strengthening the institutional capacity of seismic management. The reform shall ensure an integrated and consistent approach between energy and seismic renovations planning, and shall reduce from several years to several months the time needed to effectively complete the prioritisation of the building stock interventions. This reform element shall be implemented through the adoption of the Strategy by the Government and shall be completed by 31 December 2022.

-R2.b. Optimising the legislative framework for seismic risk reduction of existing buildings. The objective of the sub-reform is to improve the existing programme for retrofitting the existing building stock, which in the past did not have an integrated approach to seismic and energy renovations. The sub-reform shall change the programme into a multiannual programme, it shall introduce in the list of eligible expenses the works necessary to increase energy performance, it shall extend it to public buildings and not only private buildings, and also introduce the seismic risk class RSII among the eligible criteria. This reform element shall be implemented through the entry into force of the new law on seismic risk reduction of buildings and its implementation shall be completed by 31 December 2022.

Investment 1. Establishment of a renovation wave fund to finance works to improve the energy efficiency of the existing building stock

The objective of the investment is to increase the energy renovation rate of multi-family buildings and public buildings in Romania. Since Romania is one of the European countries most exposed to seismic risk, energy renovation shall, where required, be carried out in parallel with the seismic renovation to ensure a cost-efficient approach and a long-lasting effect of the investment. The works shall also respect the aesthetics and architectural quality of the building, by taking into account the possible cultural protection requirements of renovation in the case of buildings belonging to cultural heritage. The investment shall also improve the accessibility of buildings by creating facilities and adapting buildings to the needs of persons with disabilities as well as to the ageing population.

The investment shall be carried out along two axes:

-Axis 1 — Investments in residential multifamily buildings for green and resilient transition

A national support scheme for energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) of multifamily residential buildings shall be established by 31 March 2022. The objective of the investment is to achieve a total CO2 savings of at least 0,15 million tons and total primary energy savings at least 0,15Mtep. The scheme shall stipulate that all renovations are, on average, expected to achieve a minimum of 30 % of primary energy demand savings. In case of major renovation of buildings having more than 10 parking spaces, the cabling infrastructure for each parking space shall ensure the possibility to install charging points for electric vehicles and one charging point for every 5 parking spaces shall be installed.

The Ministry of Development, Public works and Administration shall be responsible for the publication of calls for proposals for local public authorities, while local authorities shall be responsible for the award of contracts. One call for proposals shall cover both the energy efficiency renovation and seismic consolidation of residential buildings and shall be dedicated to the areas with the highest seismic risk. The specification of the call shall require priority to be given to communities at risk of poverty and social exclusion. A separate call for proposals shall cover moderate energy efficiency renovations only and shall be dedicated to communities at risk of poverty and social exclusion. A third call for proposals shall cover moderate (90%) and deep (10%) energy renovations, and shall be allocated to all Local Administrative Units, including the six sectors of Bucharest, according to the number of buildings and their population of the county. If any funds remained uncontracted after this first round, the remaining funding shall be made available at the same conditions to all Local Administrative Units on a first come first served basis.

Multi-family residential buildings classified in the seismic risk class I or II (RSI and RsII) shall be excluded from the financing of energy-efficiency-only interventions.

The implementation of the investments under this axis shall be completed by 30 June 2026.

-Axis 2 — Investments in public buildings for green and resilient transition

A national support scheme for energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) of public buildings shall be established by 31 March 2022. The objective of the investment is to achieve a total CO2 savings of at least 0,075 million tons and total primary energy savings at least 0,0215Mtep. The scheme shall stipulate that all renovations are, on average, expected to achieve a minimum of 30% of primary energy demand savings. In case of major renovation of buildings having more than 10 parking spaces, it shall be ensured that at least one recharging point for electric vehicles or built-in infrastructure is installed.

The Ministry of Development, Public Works and Administration shall monitor the implementation and the works shall be carried out either through the National Investment Company or directly by the relevant central, county councils, county seat municipalities and other municipalities, including the six sectors of Bucharest. The Ministry shall be responsible for the publication of calls for proposals for public authorities. As much as possible, the calls shall be aggregated into centralised large procurement packages and standard tender documentation with performance indicators and specific requirements and technical and economic evaluation procedures shall be developed.

A call for integrated projects (seismic consolidation and energy efficiency) shall be organised for the local administrative units situated in areas at the highest seismic risk. A separate call for projects shall cover moderate (80%) and deep (20%) energy renovations. If any funds remained uncontracted after this first round, the remaining funding shall be made available at the same conditions to all Local Administrative Units on a first come first served basis.

Public buildings classified in the RSI and RsII seismic risk classes shall be excluded from the financing of energy-efficiency-only interventions.

The implementation of the investments under this axis shall be completed by 30 June 2026.

Investment 2. Implementation of the National Building Register

The objective of the investment is to create a national building stock database, indicating key information such as the building typology, its energy consumption and seismic risk. The database shall contribute to the development of policy analyses and programme formulation and evaluation, to identifying target buildings for different programmes, identifying poor/high performance, prioritising investments, and tracking overall progress.

The investment shall set up a National Buildings Register, which is an IT system on the existing national public and private building stock. The register shall be geo-referenced, linked and interoperable with urban data banks at local level and other national registers systems. In the first pilot phase, the register shall include a section with information on all building being renovated under the recovery and resilience plan. This shall allow the monitoring of energy consumption of those buildings.

Building energy passport shall be part of the logbooks and contain all information on energy-related interventions in digital format. Logbooks shall be part of the National Building Register as an integrated system.

The National Buildings Register shall be available online with the pilot section by 31 December 2024.

Investment 3. Strengthening the professional capacity of professionals and workers in renovation by developing trainings on energy efficiency in the construction sector

The objective of the investment is to complement the investments in building renovation by strengthening the skills and capacity of the professionals and workforce in the construction sector, which is currently insufficient to deliver the required ambitious energy renovations.

The training programmes shall consist in short courses in lifelong learning programmes to improve the skills of professionals and workforce with green jobs in the context of energy renovation of buildings, to be delivered in different regions uniformly spread across the Romanian territory. Partnerships between the training centres, universities and relevant institutions shall be developed. The training sessions shall be structured in modules and shall contain both theoretical and practical courses. The investment shall cover the participation of people with disabilities in specialist and training courses/programmes.

The objective of the investment is to develop 10 certification schemes in the area of energy performance of buildings for specialists and qualifications for construction workers, covering a total of at least 8 000 people.

The implementation of the investment shall be completed by 31 December 2023.

Investment 4. Circular economy and increased energy efficiency of historic buildings

The objective of this investment is to tackle the challenges of the energy renovation of historic buildings and resource efficiency such as historic monuments and buildings located in protected areas, through an interdisciplinary and integrated approach implementing the principles of sustainability and the circular economy, in line with the “National Strategy for the Protection of Historical Monuments”. The investment shall promote the collection, repair and reuse of material from renovation works on historic buildings, thus contributing to both heritage conservation and climate and energy and resource efficiency objectives, in line with the EU Renovation wave strategy.

The investment shall i) develop and test new materials and technological solutions for energy and resource efficiency interventions on historic buildings; ii) develop professional skills for energy and resource efficiency intervention on historic buildings; iii) create a pilot centre for the collection and re-use of historical construction materials from demolition works on historic buildings; iv) ensure the regular maintenance of historic buildings.

A pilot centre within the National Heritage Institute for the collection and re-use of historical building materials shall be operational by 31 December 2024 and 2 certification schemes for energy and resource efficiency interventions on historic buildings shall be developed, covering a total of at least 200 people by 31 December 2025.

E.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

90

Reform 1. Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings

Milestone

Entry into force of the amendments to the existing legislative framework on the multiannual national programme for improving the energy performance of residential buildings (Government Emergency Ordonnance No 18/2009)

Provision in the law indicating the entry into force of the amendments to the Government Emergency Ordonnance No 18/2009

Q4

2022

The amendments to the multiannual national programme for improving the energy performance of residential buildings shall increase the level of ambition of energy renovations to at least 30 % primary energy savings up to 60 % primary energy savings for residential building by establishing an updated list of expenditure for moderate or deep renovation that shall be eligible for support and by increasing the ambition of the performance indicators for projects submitted under the programme.

91

Reform 1. Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings

Milestone

The technical regulatory framework on investments for the transition to green and digital buildings is operational

Publication in the Official Gazette

Q4

2022

The technical regulatory framework shall include the following guidelines adopted and operational:
1. “The Nearly Zero Energy Building (NZEB) guidelines” shall provide guidance on the technical implementation of NZEB requirements, to support the central public administration authorities responsible for the monitoring of the implementation of the NZEB requirements. The guidelines shall include the relevant indicators and the mechanisms for their collection and monitoring.

2.”The methodology for non-invasive approach of energy efficiency on historical buildings” shall establish standards to achieve energy and resource efficiency savings for historical buildings without affecting their architectural and historical value.

92

Reform 1. Simplified and updated regulatory framework to support the implementation of investments in the transition to green and resilient buildings

Target

Reduction of timing for the issuance of building permits

Percentage (%)

0

50

Q2

2025

Reduction by at least 50 % of the time required for the issuance of building permits by the relevant entities, compared to 2020, from 270 days to 135 days for the entire process of obtaining building permits.

93

Reform 2. Strategic, legislative and procedural framework to support seismic resilience of the buildings stock

Milestone

Adoption and implementation of the National Seismic Risk Reduction strategy for the seismic retrofitting the existing building stock.

Adoption of the National Seismic Risk Reduction Strategy by the government.



 

 

 

Q4

2022

The strategy shall define the criteria for prioritising investments in the reduction of seismic risk for the existing building stock based on the level of seismic risk for buildings and communities and the benefits of risk reduction actions.

The introduction of rapid visual assessment methodology for second level of seismic risk assessment shall contribute to reducing the time needed to effectively complete the prioritisation of the building stock interventions based on vulnerability data from several years to several months.

It shall take into account the measures proposed by the Long-Term Renovation Strategy through the development of a mandatory integrated intervention guide.

94

Reform 2. Strategic, legislative and procedural framework to support seismic resilience of the buildings stock

Milestone

Entry into force of the new law on seismic risk reduction of buildings

Provision in the law indicating the entry into force of the new law on seismic risk reduction of buildings

Q4

2022

Entry into force of the new law on seismic risk reduction of buildings. The law shall cover the following actions:

-include a multi-annual approach for retrofitting the existing building stock

-introduce in the list of eligible; expenses the different eligible types of works necessary to increase energy performance;

-extend the program to public buildings alongside with multifamily residential buildings;

-introduce the RsII seismic class among the eligible criteria, alongside with RsI seismic class.

95

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Establishing a national support scheme for energy and efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) of multifamily residential buildings

Publication of the ministerial order establishing the financing scheme 

 

 

 

Q1

2022

The scheme shall finance the energy renovation of at least 4,3 million m² of residential buildings.

The scheme shall finance the following types of projects:

-integrated projects (seismic consolidation and energy efficiency);

-energy renovation projects.

The financing scheme shall ensure that at least 90 % from the total allocation shall be used for energy efficiency works and not more than 10 % of the allocation shall be used for seismic consolidation and other complementary works (such as fire safety, accessibility.)

The entire scheme shall ensure that all contracts achieve the relevant energy efficiency requirement of a minimum reduction of energy consumption by at least 50 % compared to the annual energy consumption for heating prior to the renovation for each building (except for building with a status of a cultural good), which shall deliver a minimum of 30 % (moderate renovation) and of 60 % (deep renovation) of primary energy demand savings compared to pre-renovation state and complying with the “do no significant harm” Technical Guidance (2021/C58/01).

96

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Establishing a national support scheme for energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for public buildings)

Publication of the order establishing the scheme 

 

 

 

Q1

2022

The scheme shall finance the energy renovation of at least 2,3 million m² of public buildings. The scheme shall ensure the following types of projects:

-integrated projects (seismic consolidation and energy efficiency)

-energy renovation projects.

The financing scheme shall ensure that at least 90 % from total allocation shall be used for energy efficiency works and not more than 10 % of the allocation shall be used for seismic consolidation and other complementary works (such as fire safety, accessibility).

The entire scheme shall ensure that all contracts shall achieve the relevant energy efficiency requirement of a minimum reduction of energy consumption by at least 50 % compared to the annual energy consumption for heating prior to the renovation for each building (except for building with a status of a cultural good), which shall deliver a minimum of 30 % (moderate renovation) and of 60 % (deep renovation) of primary energy demand savings compared to pre-renovation state and complying with the “do no significant harm” Technical Guidance (2021/C58/01).

97

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Calls for proposals for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for residential buildings

Publication of call specifications

Q2

2022

The following three calls for proposals shall be published by the Ministry of Development, Public works and Administration for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) of residential buildings:

-call for integrated projects where seismic consolidation interventions shall be carried out in an integrated manner with those dedicated to increasing energy efficiency. The call shall be dedicated to local administrative units located in areas where the peak value of the ground acceleration for earthquake design a(g), according to the zoning map of the Romanian territory in the Code of seismic design P100-1 is greater than or equal to 0,2g for IMR=225 years. The specification of the call shall require priority to be given to communities at risk of poverty and social exclusion.

-call for energy efficiency renovation projects dedicated to communities at risk of poverty and social exclusion with a budget of at least 20% of the allocation for Investment 1, Axis 1 corresponding to energy efficiency.

-call for territorial energy efficiency renovation projects open to all the Local Administrative Units including the six sectors of Bucharest per county according to the number of multifamily residential buildings and the population of the county.

Buildings that are classified in seismic risk classes RsI and RsII shall be excluded for energy efficiency contracts awarded in the second and third calls.

All three call for proposals shall include selection criteria stipulating that all contracts shall state the relevant energy efficiency requirement of a minimum reduction of energy consumption for heating by at least 50 % compared to the annual energy consumption for heating prior to the renovation for each building (except for building with a status of a cultural good), which shall deliver at least 30% primary energy savings compared to pre-renovation state (moderate renovation). The third call shall require 10 % of the budget to be spent for projects delivering at least 60 % primary energy savings (deep renovation) compared to pre-renovation state.

The investment shall not cover the replacement of gas boilers.

If any funds remained uncontracted after the first round, the remaining funds shall be made available at the same conditions to all the local administrative units on a first come, first served basis.

98

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Call for proposals for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) (public buildings)

Publication of call specifications

Q2

2022

Calls for proposals published by the Ministry of Development, Public works and Administration for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) of public buildings for green and resilient transition:

-call for integrated projects where seismic consolidation interventions shall be carried out in an integrated way with those dedicated to increasing energy efficiency. The call shall be dedicated to local administrative units located in areas where the peak value of the ground acceleration for earthquake design a(g), according to the zoning map of the Romanian territory in the Code of seismic design P100-1 is greater than or equal to 0,2g for IMR=225 years.

-call for moderate (80%) and deep (20%) energy renovations energy renovation projects, dedicated to central public authorities, county councils, county seat municipalities and other municipalities, including the six sectors of Bucharest.

Buildings classified in RsI and RsII seismic risk classes shall be excluded from contracts awarded in the second call.

The two calls for proposals shall include selection criteria stipulating that all contracts shall state the relevant energy efficiency requirement of a minimum reduction of energy consumption for heating by at least 50% compared to the annual energy consumption for heating prior to the renovation for each building (except for building with a status of a cultural good), which shall deliver at least 30% primary energy savings (moderate renovation) compared to pre-renovation state. The second call shall require 20% of the budget to be spent for projects delivering at least 60% primary energy savings (deep renovation) compared to pre-renovation state.

Investments shall not cover the replacement of gas boilers.

If any funds remained uncontracted after the first round, the remaining funds shall be made available at the same conditions to all municipalities on a first come, first served principle.

99

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Signature of contracts for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for residential buildings

Signature of contracts

Q4

2022

Signature of contracts for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for the transition to green and resilient buildings (residential buildings), shall be made in line with the conditions of milestones 95 and 97.

100

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Milestone

Signature of contracts for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for public buildings

Signature of contracts

Q4

2022

Signature of contracts for the energy efficiency renovation and integrated renovation (seismic consolidation and energy efficiency) for the transition to green and resilient buildings (public buildings) shall be made in line with the conditions of milestones 96 and 98.

101

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of multi-family residential buildings

Number (m2)

0

1 400 000

Q3

2024

Energy renovation of residential buildings, in accordance with the conditions in milestones 95 and 97

102

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of multi-family residential buildings

Number (m2)

1 400 000

2 800 000

Q4

2025

Energy renovation of residential buildings, in accordance with the conditions in milestones 95 and 97

103

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of multi-family residential buildings

Number (m2)

2 800 000

4 364 500

Q2

2026

Energy renovation of residential buildings, in accordance with the conditions in milestones 95 and 97

104

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of public buildings

Number (m2)

0

770 000

Q3

2024

Energy renovation of public buildings, in accordance with the conditions in milestone 96 and 98

105

Investment 1. Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of public buildings

Number (m2)

770 000

1 540 000

Q4

2025

Energy renovation of public buildings, in accordance with the conditions in milestone 96 and 98

106

Investment 1.

Establishment of a Renovation Wave fund to finance works to improve the energy efficiency of the existing building stock

Target

Completed energy renovation of public buildings

Number (m2)

1 540 000

2 313 634

Q2

2026

Energy renovation of public buildings, in accordance with the conditions in milestone 96 and 98

107

Investment 2. Implementation of the National Building Register

Milestone

National Digital Building Register established and operational.

The national digital building register is available online, with a pilot section that includes the information related to the buildings renovated through national recovery and resilience plan

Q4

2024

The register information system shall contain a geo-referenced database of public and private buildings, complementary to the INSPIRE geoportal, linked and interoperable with urban data base at local level and other national registers systems. Building energy passport shall be part of the logbooks and contain all information on energy-related interventions in digital format. Logbooks shall be part of the National Building Register as an integrated system.

The purpose of the register is to track the energy renovation data (energy savings, reduction of emission), and also data on the seismic vulnerability and other building characteristics.

108

Investment 3. Strengthening the professional capacity of professionals and workers in the renovation sector by developing trainings on energy efficiency construction

Target

Establishment of certification schemes in the field of energy performance of buildings

Number

0

10

Q1

2023

At least 10 certification schemes for workers and specialists in constructions shall be established. Certifications shall be provided in training programs in the form of short courses in lifelong learning programs to be delivered in different regions uniformly spread across the Romanian territory. The training shall be dedicated to improving the skills of professionals and workers in the context of energy renovation of buildings.

109

Investment 3. Strengthening the professional capacity of professionals and workers in the renovation sector by developing trainings on energy efficiency construction

Target

At least 8 000 specialist and workers with a certification for the completion of energy efficiency related trainings

Number

0

8 000

Q4

2023

At least 8 000 specialist and workers in the construction sector shall have obtained a short time course certification for the completion of energy-efficiency-related trainings. 

110

Investment 4. Circular economy and increased energy efficiency of historic buildings

Milestone

A laboratory for testing new materials and technological solutions for historical buildings is operational.

The laboratory is operational

Q4

2024

The organisational structure and management procedures of the laboratory shall be in place to allow tests to be conducted according to scientific methods. The results of the test shall be used to develop the technical procedures of the methodology dedicated to increase the energy efficiency of historic buildings by using techniques and new materials, depending on the region, the construction tradition and physical characteristics.

111

Investment 4. Circular economy and increased energy efficiency of historic buildings

Milestone

A pilot centre within the National Heritage Institute for the collection and re-use of historical building materials is operational

Operational license obtained

Q4

2024

The pilot centre shall be equipped with infrastructure for the dismantling, separate collection and sorting of historic materials, as well as with tools needed to repair the collected materials coming from renovations and demolitions of historic buildings. The repaired materials shall be reused in future works on historic buildings including those financed through this component. The development of the centre is based on circular economy and is in line with resource efficiency principles.

112

Investment 4. Circular economy and increased energy efficiency of historic buildings

Target

At least 200 professionals with a certification for the completion of trainings on interventions and energy efficiency on historic buildings.

Number

0

200

Q4

2025

At least 200 professionals shall have obtained a certification for the completion of energy-efficiency-related trainings in the field of historic buildings. 

F.COMPONENT 6: Energy

The energy sector is the largest source (66 %) of greenhouse gas (GHG) emissions in Romania. In its National Energy and Climate Plan (NECP) Romania estimates approximately EUR 22,6 billion of investment needs in the energy sector over 2021-2030 to achieve the NECP 2030 policy objectives.

The objective of the component is to address the main challenges of the Romanian energy sector in terms of decarbonisation and air pollution. In particular, it aims to accelerate the decarbonisation of the energy sector by phasing-out lignite and coal fired-power plants by 2032 and by facilitating the deployment of renewables and alternative energy sources, such as green hydrogen. It also aims to increase the flexibility of the electricity grid, digitalise the energy sector, and reduce the energy intensity of industry. The component also intends to improve the corporate governance of state-owned enterprises in the energy sector.

These investments and reforms shall address Romania’s country-specific recommendations of the past two years to “focus investment-related economic policy on […] low carbon and energy efficiency” (country-specific recommendation 4, 2019) and to “focus on investments for the green […] transition, in particular on clean and efficient production and use of energy and environmental infrastructure, including in the coal regions” (country-specific recommendation 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

F.1.    Description of the reforms and investments for non-repayable financial support

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

The objective of the reform is the decarbonisation of the energy sector, with a focus on power generation. The reform covers two main measures: the coal phase-out and the increase of renewables electricity generation capacity.

The first reform element aims to phase-out coal and lignite-fired power plants by 2032. The Decarbonisation law and related secondary legislation setting out the calendar for the decommissioning of the total installed coal and lignite capacity shall enter into force by 30 June 2022. A cumulative 3 780MW of coal and lignite-fired installed electricity production capacity shall be decommissioned by 31 December 2025.

The second reform element aims to facilitate and accelerate the deployment of renewables in the Romanian energy mix. In addition to transposing Union legislation, the new Energy law shall: i) introduce Contracts for Difference (CfD) as the main support mechanism for investments in renewables power production; ii) allow direct negotiation of Power Purchase Agreements (PPAs) by all energy producers; iii) simplify the licensing and authorisation procedures for renewables investments, setting out shorter and mandatory administrative response times and implementing accountability procedures for unnecessary delays; iv) introduce a specific support framework for offshore renewables investments in currently under-exploited regions; and v) implement Demand Side Response in the balancing market to reduce consumption at peak hours and increase the participation of industrial consumers in the energy market.

The new Energy Law shall enter into force by 30 June 2023. As a result of those actions, an additional capacity of at least 3 000MW of renewable energy (wind and solar) shall be put into operation and connected to the grid by 30 June 2026.

Reform 2. Improving corporate governance of state-owned companies in the energy sector

The reform focuses on improving the corporate governance of state-owned enterprises, concentrating on the energy sector. In particular, the reform shall improve the transparency and competitiveness of the selection and appointment of members of the management and/or supervisory boards of state-owned companies in the energy sector. Those boards shall be appointed with a 4-year mandate and the system of remuneration shall be based on quantitative and qualitative objectives related to financial and service performance.

The implementation of the reform shall be completed by 31 December 2022. The reform shall also complete the listing of at least 15 % shares of Hidroelectrica by 30 June 2023.

Reform 3. Green budgeting

Romania currently makes no use of green budgetary practices. The objective of this reform is to allow the monitoring of green budgetary expenditure and the assessment of the environmental and climate impact of fiscal policy. Under this reform, the Ministry of Finance shall develop and apply a methodology for assessing the impact of individual budget lines on environmental objectives, in line with the EU taxonomy for sustainable activities and the DNSH Technical Guidance (2021/C58/01). The reform shall increase the capacity of local public authorities to implement green budgetary practices.

The methodology shall be adopted, published and implemented by 30 September 2023.

Investment 1. New capacities for electricity generation from renewable sources

The objective of the investment is the installation of new renewable power production capacity through a technologically neutral competitive public tender between different technologies (wind and solar). The projects shall comply with the relevant annexes of the Commission Delegated Regulation (EU) (C(2021) 2800/3) under the Taxonomy Regulation (EU) (2020/852).

The investment shall consist in grants for the construction of the selected installations, with the objective of installing 950MW of renewables power production capacity, or the maximum volume compatible with the tender being held in competitive conditions.

The implementation of the investment shall be completed by 30 June 2024.

F.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

113

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Target

Decommissioning of coal-fired power-production capacity

 

Megawatts (MW)

 0

1 695

Q4

2021

1 695MW of coal-fired installed electricity production capacity have been decommissioned.

114

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Milestone

Entry into force of the Decarbonisation law adopting the coal/lignite phase-out calendar

Provision in the law indicating the entry into force of the legislative act

 

 

 

Q2

2022

By Q2 2022, a decarbonisation law (and any secondary legislation) shall enter into force with a timetable up to 2032 for:

-Decommissioning of the total coal/lignite fired installed electricity production capacity (i.e., 4 590MW).

-Measures relating to the rehabilitation of mines to be closed (e.g., salvaging soil in mined areas such as topsoil and revegetation, waste deposits, post-closure land use for the landform).

-Measures for upskilling (professional reconversion and retraining), and other measures with a socio-economic impact on the affected communities.

115

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Target

Decommissioning of lignite-fired power-production capacity

Megawatts (MW)

1 695

2 355

Q4

2022

A cumulative 2 355MW of coal and lignite-fired installed electricity production capacity have been decommissioned.

 116

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Milestone

Entry into force of the New Energy Law

Provision in the law indicating the entry into force of the Energy Law

 

 

 

Q2

2023

-Entry into force of a new Energy Law (and of any required secondary legislation) which shall:
Implement the Contracts for Difference (CfD);

-Establish renewables Power Purchase Agreements (PPAs);

-Simplify the licensing and permitting procedures for renewables investments, short and binding administrative response times and accountability procedures for unnecessary delays, reduction of the necessary documentation and procedures, introduction of a new dedicated framework for offshore renewables plants;

-implement Demand Side Response in the balancing market.

117

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Milestone

Signature of contracts for Difference for renewable sources

Signature of all contracts

 

 

 

Q4

2023

Signature of contracts following the first round of tender procedures for the allocation of Contracts for Difference (CfD) to promote the production of electricity (at least 1 500MW of installed capacity) from renewable sources, in accordance with the ‘do no significant harm’ Technical Guidance (2021/C58/01).

118

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Milestone

Signature of contracts for Difference for renewable sources

Signature of award of all contracts

Q2

2025

Signature of contracts following the second round of tender procedures for the allocation of Contracts for Difference (CfD) to promote the production of electricity (at least 2 000MW of additional installed capacity) from renewable sources, in accordance with the ‘do no significant harm’ Technical Guidance (2021/C58/01).

119

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Target

Decommissioning of lignite-fired power production capacity

 

Megawatts (MW)

2 355 

3 780

Q4

2025

A cumulative 3 780MW of coal and lignite-fired installed electricity production capacity have been decommissioned and partly replaced by 1 300MW future-proof, flexible and efficient gas-fired power production or gas-fired Combined Heat and Power, enabled for the use of renewable and low-carbon gases.

120

Reform 1. Electricity market reform, replacement of coal in the energy mix and support for a legislative and regulatory framework for private investment in renewable electricity production

Target

Additional renewables capacity commissioned

Megawatts (MW)

4 408

7 408

Q2

2026

At least 3 000MW of additional renewables capacity (wind and solar) compared to the existing installed capacity (wind and solar) have been commissioned and connected to the grid.

121

Reform 2. Improving corporate governance of state-owned enterprises in the energy sector

Milestone

Improving corporate governance of State-owned companies in the energy sector

The selection and appointment of management boards is completed

 

 

 

Q4

2022

Selection and appointment of the members of the management and/or supervisory boards of all national state-owned enterprises (SOEs) under the remit of Ministry of Energy (e.g., Hidroelectrica, Romgaz, Nuclearelectrica) on the basis of a transparent and competitive procedure with a mandate of 4 years and a remuneration scheme based on quantitative and qualitative objectives linked to the financial (such as revenue and return, involvement of state budget) and service performance (such as based on a representative customer satisfaction survey by an independent body) of the undertaking.

122

Reform 2. Improving corporate governance of state-owned enterprises in the energy sector

Milestone

Listing of at least 15% shares of Hidroelectrica completed

Completion of the Initial Public Offer

 

 

 

Q2

2023

Following the publication of the listing prospectus, a stake of at least 15% of Hidroelectrica shall be traded on the exchange after an initial public offer.

123

Reform 3. Green budgeting

Milestone

Finalising and applying a green budgetary planning methodology

Development and start of application of a green budgetary planning methodology

Q3

2023

The Ministry of Finance shall finalise and apply a methodology for assessing the impact of individual budget lines on environmental objectives in line with the EU taxonomy for sustainable activities and the ‘do no significant harm’ Technical Guidance (2021/C58/01). The methodology shall be adopted, published, and enter into application and shall allow monitoring green budget expenditure and the assessment of environmental and climate impact of fiscal policy.

124

Investment 1. New capacities for electricity generation from renewable sources

Milestone

Opening a call for tender for projects for the production of energy from renewable sources (wind and solar)

Publication of the tender specifications

Q1

2022

A call for tender for the selection of projects for the production of energy from renewable sources (wind and solar) is published. The selection criteria shall ensure compliance with the ‘do no significant harm’ Technical Guidance (2021/C58/01). The measure shall be open for both SMEs and large investors.

125

Investment 1. New capacities for electricity generation from renewable sources

Target

Additional capacity installed from renewable sources (wind and solar)

Megawatts (MW)

 0

950

Q2

2024

950 MW capacity of renewables (wind and solar) commissioned and connected to the grid, in compliance with the conditions in milestone 124, or the maximum volume compatible with the tender being held in competitive conditions.

F.3.    Description of the reforms and investments for the loan

Reform 4. Developing a favourable legislative and regulatory framework for future technologies, in particular hydrogen and storage solutions

The objective of the reform is to amend the existing legislative and regulatory framework to introduce measures to support and facilitate the deployment of renewable hydrogen, with a focus on the transport and energy (gas and electricity) sectors. In particular, the reform shall develop a National Hydrogen Strategy and a Strategy Action Plan, setting the timetable for the implementation of the measures in the Strategy. The reform shall remove any legislative and administrative obstacles for the development of the renewable hydrogen technology and contribute to the achievement of the future national and European targets for the production, storage, transport and use of renewable hydrogen by 2030.

By way of regulation, hydrogen-ready appliances (such as boilers) and equipment shall be mandatory as of 1 January 2026 for all new installations.

In line with Article 7 (2) of the Recovery and Resilience Regulation, Romania has requested technical support through the instrument on technical assistance for the development of the National Hydrogen Strategy, including the definition of a set of policies to guide, coordinate and mobilise public and private investment in the areas of production, storage, transport and consumption/use of hydrogen (renewable gases), including the revision of the legislative framework necessary to stimulate this area. The amendments to the legislative and regulatory framework based on the National Hydrogen Strategy and relevant Action Plan shall be completed by 31 March 2023.

Reform 5. Reducing the energy intensity of the economy by developing a sustainable mechanism to boost energy efficiency in industry

The objective of the reform is to facilitate investments in energy efficiency in industry and increase the resilience of the industrial sector.

The reform shall: i) remove obstacles to energy performance contracting; ii) introduce market surveillance for energy efficiency to ensure product compliance with eco-design standards, iii) improve SMEs awareness of energy efficiency measures, programmes and benefits; iv) create a monitoring system for the implementation of the recommendations from energy audits in the ETS sectors; v) introduce new standards for green financial instruments.

The implementation of the reform shall be completed by 31 December 2022.

Reform 6. Increasing competitiveness and decarbonisation of the heating — cooling sector

The objective of the reform is to contribute to the decarbonisation of the heating and cooling sector.

The reform shall: i) clarify the framework of responsibilities between central and local authorities for the management of the heating and cooling sector and extend the application of the Corporate Governance Act to district heating suppliers; ii) ensure the sustainability and traceability of biomass to prevent any negative impact of bioenergy use on biodiversity and forests and diversify the energy mix in heating and cooling outside forest biomass; iii) allow apartment blocks and their associations of tenants to produce and sell excess solar and possibly wind energy in more flexible forms, by creating net metering schemes, simplifying connection procedures and introducing incentives.

The implementation of the reform shall be completed by 31 December 2023.

Investment 2: Distribution infrastructure of renewable gases (using natural gas in combination with green hydrogen as a transitional measure), as well as green hydrogen production capacities and/or its use for electricity storage

The objective of this investment is to contribute to the deployment of green hydrogen in line with the EU Strategy for hydrogen.

The investment has two sub-investments: the construction of a gas distribution network enabling the transport of green hydrogen in the Oltenia region and the installation of electrolysers for the production of green hydrogen.

The objective of the first sub-investment is to build at least 1 870km of network for the distribution of green hydrogen in the Oltenia region.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the distribution network shall carry at least 20 % of renewable hydrogen (by volume) when commissioned by 30 June 2026 and 100% renewable hydrogen and/or other renewable gases in 2030. To obtain the award of the contract, the operator shall demonstrate that the technical features of the infrastructure enable the transport of renewables gases, including green hydrogen. The operator shall also indicate the source of supply of required volumes of green hydrogen to be blended with natural gas to reach the minimum blending of 20% at the time of commissioning. Moreover, digital systems and components integrating ICT, control systems and sensor technologies shall be an integral part of the measure to enable the interactive and intelligent monitoring, metering, quality control and management of hydrogen production, transmission, distribution and consumption within the network. To ensure the safe use of the network with the blending of at least 20% hydrogen, legislative changes foreseen in Reform 2 shall ensure that only hydrogen-ready appliances and equipment shall be connected to this network.

The objective of the second sub-investment is the installation of green hydrogen production capacities of at least 100 MW in electrolysers, producing at least 10 000 tonnes of hydrogen from renewable sources by 31 December 2025.

Investment 3: Development of flexible and highly-efficient gas-fired electricity and heat generation (CHP), district heating, to achieve deep decarbonisation

The objective of the investment is to contribute to addressing Romania’s challenges in the transition away from coal and lignite energy sources. In particular, the investment shall ensure the provision of heat to consumers in the context of the phasing out of coal-fired power and heat production.

The investment shall lead to the installation of at least 300 MW electricity production capacity of future-proof, flexible and high-efficient gas-fired Combined Heat and Power enabled for the use of renewable and low-carbon gases.

It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). This is ensured through the following accompanying measures:

-Reform 2 in component 6, combined with Investment 2 in component 6 include credible plans to increase usage of renewable and low-carbon gases through the adoption and implementation of a National Hydrogen Strategy and Action Plan and the installation of renewable hydrogen production capacities; and

-Reform 1 in component 6 results in the closure of coal and lignite power and heat generation facilities, which is significantly more carbon-intensive than the high-efficient gas-fired Combined Heat and Power under this investment. The closure of a cumulative amount of 3 780MW of coal/lignite-fired capacity shall occur by 31 December 2025 and the capacity is significantly higher than the 300 MW gas-fired Combined Heat and Power to be installed under this investment and the 1 300MW of gas-fired capacity that is planned to be installed as a replacement; and

-Reform 1 in component 6 results in at least 3 000MW of additional renewables capacity being installed by 2026, which shows that Romania has a credible trajectory for increasing the share of renewables towards their 2030 renewables target set out in the National Energy and Climate Plan. As Romania intends to increase that target, a second round of auction for the award of Contracts for Difference for renewables shall be launched by 30 June 2025 to demonstrate a credible trajectory for increasing the share of renewables towards the increased target; and

-Reform 1 in component 6 includes concrete reforms and investments to increase the share of renewables, such as the implementation of the Contracts for Difference (CfD), the establishment of renewables Power Purchase Agreements (PPAs), the simplification of the licensing and permitting procedures for renewables investments, short and binding administrative response times and accountability procedures for unnecessary delays, reduction of the necessary documentation and procedures, and introduction of a new dedicated framework for offshore renewables plants.

In addition, the National Air Pollution Control Programme (NAPCP), which should have been submitted to the Commission by April 2019 as an EU legal requirement based on the Directive (EU) 2016/2284, shall be approved by 30 June 2022 (see footnote 1 above).

The implementation of the investment shall be completed by 30 June 2026.

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including auxiliary equipment), as well as new electricity storage capacities

The objective of the investment is to increase the flexibility of the electricity grid and to contribute to the integration of additional renewables generation capacities.

The investment has three sub-investments:

-The first sub-investment in the battery value chain (manufacturing, assembly, and recycling) shall achieve a total battery manufacturing and assembly yearly capacity of at least 2GW by 31 December 2025, following a call for projects with selection criteria ensuring compliance with the “do no significant harm” Technical Guidance (2021/C58/01). These criteria shall in particular exclude activities related to waste landfills, incinerators 2  and mechanical biological treatment plants 3  from support under this measure, as well as activities related to the mining of raw materials.

-The second sub-investment in the value chain of photovoltaic cells and panels (manufacturing, assembly, and recycling) shall achieve a total yearly capacity of at least 200MW of photovoltaic cells and panels by 31 December 2025, following a call for projects with selection criteria ensuring compliance with the “do no significant harm” Technical Guidance (2021/C58/01). These criteria shall in particular exclude activities related to waste landfills, incinerators 4  and mechanical biological treatment plants 5 from support under this measure, as well as activities related to the mining of raw materials.

-The objective of the third sub-investment is to install a total electricity storage capacity of at least 240MW (or 480MWh) by 31 December 2025, following a call for projects with selection criteria ensuring compliance with the “do no significant harm” Technical Guidance (2021/C58/01).

The implementation of the investment shall be completed by 31 December 2025.

Investment 5. Ensuring energy efficiency in the industrial sector.

The objective of the investment is to increase the energy efficiency of the industry, such as reducing energy consumption, developing systems to digitise energy consumption metering, and increasing energy and heat self-consumption.

The investment shall achieve at least a 30 % reduction in direct and indirect GHG emissions compared to ex-ante emissions for at least 50 projects, to be monitored through an IT platform for centralising and analysing national energy consumption.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 6 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 7 ; (iii) activities related to waste landfills, incinerators 8 and mechanical biological treatment plants 9 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation may be selected.

The implementation of the investment shall be completed by 31 December 2025.

F.4.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

 126

Reform 4. Developing a favourable legislative and regulatory framework for future technologies, in particular hydrogen and storage solutions

Milestone

Entry into force of the amendments to the legislative framework, implementing the National Hydrogen Strategy

Provision in the law indicating the entry into force of the amendments to the legislative framework

 

 

 

Q1

2023

Entry into force of the amendments to the regulatory framework based on the National Hydrogen Strategy and relevant Action Plan. The amendments shall remove any legislative and administrative obstacles to the development of the renewable hydrogen technology and implement measures needed for the development of the whole renewables hydrogen value chain, including the mandatory use of hydrogen-ready appliances and equipment by end-users by 1 January 2026.

127

Reform 5. Reducing the energy intensity of the economy by developing a sustainable mechanism to boost energy efficiency in industry and increase resilience

Milestone

Entry into force of the legislative framework introducing measures to facilitate investment in energy efficiency in the industry

Provision in the law indicating the entry into force of the legislative act

Q4

2022

Entry into force of the legislative framework introducing measures to facilitate investment in energy efficiency in the industry. The reform shall: i) remove obstacles to energy performance contracting; ii) introduce market surveillance and application of standards for energy efficiency to ensure product compliance with eco-design standards, iii) improve SMEs awareness of energy efficiency; iv) create a monitoring system for the implementation of the recommendations from energy audits in the ETS sectors; v) introduce new standards for green financial instruments.

128

Reform 6. Increasing competitiveness and decarbonisation of the heating — cooling sector

Milestone

Entry into force of the legislative framework introducing measures to decarbonise the heating and cooling sector

Provision in the law indicating the entry into force of the legislative act

Q4

2023

Entry into force of the legislative framework introducing measures to decarbonise the heating and cooling sector. The reform shall: i) clarify the framework of responsibilities between central and local authorities for managing the heating and cooling sector and extend the application of the Corporate Governance law to district heating providers; ii) include a review of the framework to ensure the sustainability and traceability of biomass, to prevent any negative impact of the use of bioenergy on biodiversity and forests; iii) diversify the energy mix in heating and cooling away from forest biomass; iv) increase the role of prosumers in renewables production including quantitative compensation.

129

Investment 2. Distribution infrastructure of renewable gases (using natural gas in combination with green hydrogen as a transitional measure), as well as green hydrogen production capacities and/or its use for electricity storage

Milestone

Signature of contracts for the construction of at least 100MW of new electrolysers capacity

Signature of contracts

Q2

2022

Signature of contracts for construction of new electrolysers capacity, of at least 100MW, with an expected volume generated of at least 10 000 tons of renewable hydrogen.

130

Investment 2. Distribution infrastructure of renewable gases (using natural gas in combination with green hydrogen as a transitional measure) as well as green hydrogen production capacities and/or its use for electricity storage

Milestone

Signature of contract for the construction of a hydrogen ready distribution network in the Oltenia region

Signature of contracts

Q4

2023

Signature of contract for the construction of a hydrogen ready distribution network in the Oltenia region. The selection criteria shall ensure compliance with the “do no significant harm” Technical Guidance (2021/C58/01), in particular the conditions set out in Annex III. In particular, the operator shall demonstrate that the technical features of the infrastructure enable the transport of renewables gases. The operator shall also indicate the source of supply of required volumes of green hydrogen to be blended with natural gas to reach the minimum blending of 20% at the time of commissioning.

131

Investment 2. Distribution infrastructure of renewable gases (using natural gas in combination with green hydrogen as a transitional measure), as well as green hydrogen production capacities and/or its use for electricity storage

Target

Production of green hydrogen

 

Megawatts (MW)

0

100

Q4

2025

Commissioning of at least 100MW electrolysers capacity, with an expected volume generated of at least 10 000 tons of renewable hydrogen.

132

Investment 2. Distribution infrastructure of renewable gases (using natural gas in combination with green hydrogen as a transitional measure), as well as green hydrogen production capacities and/or its use for electricity storage

Target

Hydrogen enabled distribution network, completed and in operation in the Oltenia region

 

Kilometres (km)

0

1870

Q2

2026

The hydrogen ready distribution network in the Oltenia region must be completed and commissioned and shall transport at least 20% renewable hydrogen. To ensure compliance with the “do no significant harm” Technical Guidance (2021/C58/01), the network shall transport 100% renewable hydrogen by 2030.

133

Investment 3. Development of flexible and high-efficient gas-fired combined heat and power generation (CHP) in district heating to achieve deep decarbonisation

Milestone

Signature of contracts for high-efficient gas cogeneration and district heating projects

Signature of contracts

 

 

 

Q2

2022

Signature of contracts for the construction or retrofitting of high-efficient gas cogeneration in district heating as defined in Directive 2010/31/EU. The selection criteria shall ensure compliance with the “do no significant harm” Technical Guidance (2021/C58/01), in particular the conditions set out in Annex III. The investments shall replace at least the same capacity of significantly more carbon-intensive power plant and/or heat generation facility (such as coal, lignite or oil), leading to a decrease in GHG emissions.

134

Investment 3. Development of flexible and high-efficient gas-fired combined heat and power generation (CHP) in district heating to achieve deep decarbonisation

Target

High-efficient cogeneration plants and district heating

 

Megawatts (MW)

0

300

Q2

2026

Commissioning of high-efficient Combined Heat and Power in district heating, in compliance with the “do no significant harm” Technical Guidance (2021/C58/01), in particular the conditions set out in Annex III in accordance with milestone 133.

135

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including ancillary equipment), and new electricity storage capacities

Milestone

Signature of contracts for investments in the battery production chain

Signature of contracts

 

 

 

Q3

2022

Signature of contracts for investments in the battery value chain and photovoltaic cells and panels (production - assembly - recycling). The selection criteria shall ensure compliance with the “do no significant harm” Technical Guidance (2021/C58/01), in particular through the use of exclusions in the areas waste management and mining of raw materials.

136

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including ancillary equipment), and new electricity storage capacities

Milestone

Signature of contracts under the Battery Storage Support Scheme

Signature of contracts

 

 

 

Q3

2022

Signature of contracts for the development of battery storage capacity of at least 240MW. The selection criteria shall ensure compliance with the “do no significant harm” Technical Guidance (2021/C58/01), in particular through the use of exclusions in the areas of waste management and mining of raw materials.

137

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including ancillary equipment), and new electricity storage capacities

Target

Battery production and/or assembly and/or recycling plants commissioned

 

Gigawatts (GW)

2

Q4

2025

Commissioning of battery manufacturing and assembly capacities plants with a total capacity of at least 2GW per year.

138

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including ancillary equipment), and new electricity storage capacities

Target

Photovoltaic cells and panels capacity commissioned

Megawatts (MW)

0

200

Q4

2025

Commissioning of photovoltaic cells and panels production with a total capacity of at least 200MW per year.

139

Investment 4. Industrial chain of production and/or assembly and/or recycling of batteries, cells and photovoltaic panels (including ancillary equipment), and new electricity storage capacities

Target

Electricity storage capacity installed

 

Megawatts (MW)

0

240

Q4

2025

Commissioning of at least 240MW of electricity storage capacity, in accordance with the Do No Significant Harm conditions set out in the “Do No Significant Harm” Technical Guidance (2021/C58/01) and in milestone 136. 

140

Investment 5. Ensuring energy efficiency in the industrial sector

Milestone

Opening of a call for tender for energy efficiency investments for the industry

Publication of tender specifications

 

 

 

Q2

2022

Launch of call for the selection of energy efficiency projects in industry. The selection criteria shall require:

- the achievement of at least 30% reduction in indirect and direct GHG emissions compared to the ex-ante emissions, to be monitored through an IT platform for centralising and analysing national energy consumption;

- compliance with the Do No Significant Harm Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation.

141

Investment 5. Ensuring energy efficiency in the industrial sector

Target

Completed energy efficiency projects

 

Number

0

50

Q4

2025

Completion of at least 50 energy efficiency projects in industry achieving at least 30 % reduction in indirect and direct GHG emissions compared to the ex-ante emissions to be monitored through an IT platform for centralising and analysing national energy consumption, in line with the conditions for compliance with the Do No Significant Harm Technical Guidance (2021/C58/01), as set out in milestone 140.

G.COMPONENT 7: DIGITAL TRANSFORMATION

This component of the recovery and resilience plan addresses digitalisation challenges related to the public administration such as fragmentation, interoperability as a major obstacle in the development of the end-user centred digital services, bureaucratic barriers to obtaining building permits necessary for network constructions, low basic and advanced digital skills, exposure to cyber risks. Against this background, the objective of this component is to tackle all these challenges and to achieve a coherent and integrated digital infrastructure for the benefit of citizens and businesses, while providing the necessary tools (such as connectivity, skills development or cybersecurity) for the transition to a digitalised economy and society. In particular, the component includes reforms necessary to set up the governmental cloud and to ensure interoperability, improving connectivity, increasing the protection and the cybersecurity of public and private entities and increasing the digital competences for the public sector. The investments underpinning the reforms range from the development of the governmental cloud to digitalisation of health, judiciary, environment, employment and social protection, public procurement, non-governmental organisations, connectivity for white areas, ensuring cybersecurity for different structures and increasing the skills both in cybersecurity and for civil servants and the population at large. One key investment refers to the deployment of the electronic identity card for the Romanian citizens.

The component is structured in 4 reforms and 19 investments.

These investments and reforms shall contribute to address Romania’s country-specific recommendations of the past two years to “Improve skills, including digital” (country-specific recommendation 3, 2019) and to “strengthen skills and digital learning” and “focus investment on the green and digital transition, […], digital service infrastructure” (country-specific recommendations 2 and 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

G.1. Description of the reforms and investments for non-repayable financial support 

Reform 1. Development of a unitary framework for defining the architecture of a government cloud system

The objective of this reform is to modernise the public administration by adopting advanced technologies and focusing on the citizens and businesses’ needs, while ensuring the prerequisites for data-driven policy development and increasing the interoperability of existing digital technologies. Furthermore, the reform shall support the development of an integrated architecture of public digital services.

The implementation of this reform shall consist in two lines of action. First, the entry into force of the Information Systems Interoperability Law is expected to detail the uniform set of standards and rules that public entities shall apply for the development of applications in a secure and sustainable environment, while aligning with the European Interoperability Framework. Second, the entry into force of the Government Cloud Act is expected to set out the responsibilities and tasks regarding the design, implementation, development and management of the cloud infrastructure, technologies and services. Cybersecurity shall be provided for both for the external and internal protection of the cloud, applying the most advanced and economically efficient cyber-security available solutions.

A temporary task force formed by specialists is expected to be put in place for the monitoring and implementation of all digital-related measures in the Romanian recovery and resilience plan.

The implementation of the reform shall be completed by 30 June 2022.

Reform 2. Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high capacity networks

The objective of this reform is to accelerate the national roll-out of 5G networks, in accordance with security regulations, and provide broadband coverage for white areas (small rural municipalities, isolated localities, disadvantaged inhabited areas), tackling the rural – urban digital divide, reducing the administrative burden and streamlining procedures and fees, creating the prerequisites for equal access to digital services and internet access.

The reform shall include several actions:

-The implementation of Romania’s roadmap applying of the Connectivity Toolbox 10 . Romania is expected to implement 12 out of the 39 recommendations included in the toolbox at EU level.

-The entry into force of the 5G network security law which shall foresee that communication providers shall only be able to use technologies, equipment and software in 5G networks from manufacturers authorised in advance by decision of the Prime Minister, on the basis of the opinion of the Supreme Council of National Defence. Each manufacturer of 5G equipment and software shall have to apply for this authorisation, which shall be submitted to the Ministry responsible for Communications.

-The (auction for) granting the so called ”5G licenses” (i.e. in the 700 MHz, 1500 MHz and 3,4 – 3,8 GHz bands). Long term licences are envisaged as per the European Electronic Communications Code criteria to efficiently stimulate 5G, promote competition and end-users’ rights.

The implementation of the reform shall be completed by 30 September 2023.

Reform 3. Ensuring cybersecurity of public and private entities owning critical value infrastructure

The objective of this reform is to continue the process of strengthening the resilience of the public and private entities owning critical infrastructure against cyber risks.

The implementation of this reform shall establish the legal and institutional framework for the organisation and conduct of activities in the areas of cybersecurity and cyber defence, cooperation mechanisms and responsibilities of institutions in these areas by finalisation and entry into force of the Defence and Cybersecurity Law. Furthermore, the Cyberint National Centre coordinates the preparation of the National Cybersecurity Strategy 2021-2026, which includes provisions regarding regular assessments and updates of the cybersecurity regulatory and institutional framework aiming to strengthen the public-private-academic partnership to increase the cyber resilience of society as a whole, to develop the capacity to respond to cyber-attacks and the resilience of systems, networks and services and to consolidate the role of Romania in the cybersecurity architecture at international level.

The implementation of the reform shall be completed by 31 December 2022.

Reform 4. Increasing digital competence for public service and digital education throughout the life for citizens

The objective of this reform is to support the digitalisation of the economy and the transition to industry 4.0 and to align the labour market to the latest developments in this sector.

The reform shall be implemented through the entry into force of the amendment of the Classifications of Occupations Code including the definition of new digital occupations, equivalent to other EU countries. An analysis shall be performed as well as consultations with universities and other relevant stakeholders.

The implementation of the reform shall be completed by 30 September 2022.

Investment 1. Deployment of the Government Cloud Infrastructure

The objective of this investment is to deploy the government cloud infrastructure, using secure and energy-efficient technologies to ensure the safe, interoperable and standard character of the public data. 

The implementation of this investment shall include: i) the construction of Tier IV data centres by design for the two main data centres and Tier III by design for secondary ones, ii) provision of specific communication and information technology infrastructure, iii) development and expansion of the support infrastructure (electricity, physical security measures), iv) deployment of scalable and high-availability IT&C infrastructure in each data centre. The data centres shall be compliant with the “European Code of Conduct on Data Centre Energy Efficiency”. 11  

This implementation of this investment shall be supported by an assessment performed by an external consultant which is expected to provide the strategic and technological options and the legislative and regulatory package to determine the achievement of the Government Cloud, the possibilities for the construction, delivery, installation and operation of civilian and technological infrastructures in accordance with the deadlines laid down in the Plan, mapping of public digital applications/services currently offered by state authorities of, design of processes and procedures implemented in production and/or at implementation stages and the cloud development/migration plan of the mapped applications.

At least 30 public institutions shall be connected and use the Government Cloud.

The implementation of the investment shall be completed by 31 December 2025.

Investment 2. Cloud development and migration 

The objective of this investment is to upgrade the technologies used in public institutions so that they become cloud ready, while also developing new cloud-native applications for cloud migration. 

The implementation of this investment is expected to lead to a minimum of cloud-ready/virtualised applications to migrate in the cloud, based on the analysis that shall be developed by the external consultant to support the government in the deployment of the government cloud. It is expected that at least 30 government cloud-native digital service applications are migrated in Platform-as-a-Service (PaaS) or Infrastructure-as-a-Service (IaaS).

The implementation of the investment shall be completed by 30 June 2026.

Investment 3. Development of eHealth and telemedicine system 

The objective of this investment is to reduce working time for healthcare providers, the National Health Insurance House and Health Insurance House employees, while ensuring cybersecurity of the Health Insurance IT Platform (PIA). The capacity of central, regional and local health institutions shall be further strengthened to digitally manage health data and the uptake of telemedicine solutions shall be sped up.

The investment also aims to foster the integration of health institutions through digital infrastructure, easing the access to data for the Ministry of Health and other stakeholders (such as public health directorates), reducing fragmentation and increasing the quality of health data.

The investment equally aims at increasing the access of rural areas and small urban areas and vulnerable groups to specialised consultations, while reducing the waiting time by using telemedicine. Increasing the access to information and education to prevent unplanned pregnancies and family planning are also targeted by telemedicine.

Several steps shall be followed in the implementation phase of this investment. First, a needs assessment for the current PIA, mapping the available infrastructure and existing gaps shall be conducted. Second, PIA shall be transformed through a software solution from a modular and fragmented system to a system that is interoperable, user-friendly and has optimised data flows, electronic monitoring of objectives, activities and performance indicators of the healthcare providers and with new functionalities (such as digitalisation of medical related documents. The role of PIA shall be extended beyond the National Health Insurance House through the development of additional modules for all the institutions involved in health policies at national level for modular disease registries and interface for telemedicine and patient monitoring. Communication between patient and doctor and between doctors is expected to be supported, focusing in particular on vulnerable groups or regions. The investment shall be underpinned by training and acquisition of equipment. Furthermore, new computer modules and applications shall be developed as well as new digital registration and administration systems, based on interoperable and centralised data. A telemedicine system shall be designed to provide real time and asynchronous access to specialised consultations for patients in rural and small urban areas.

The implementation of the investment shall be completed by 30 September 2025.

Investment 4. Digitalisation of the judiciary

The objective of this investment is to support the preparation and transition of the Romanian judicial system to a centralised electronic case management system. Romania is already developing using other EU funds the ECRIS system (electronic case management system) and the recovery and resilience plan shall complement the efforts in this regard.

The investment consists of the following actions:

-the technical transition from local to shared central servers – it shall optimise the management and usage of technical resources (central servers, data centres, virtualisation servers).

-upgrade and finalisation of the technical infrastructure for teleworking and digitalisation of documents with the aim of increasing the resilience of the judicial system.

-improvement of cybersecurity capabilities (by providing equipment and training) both at central and local level (in particular to courts, but also to prosecutors’ offices).

-implementation of a new system allowing secure videoconferencing for the participation of judges in online activities at the level of the High Court of Cassation and Justice.

-support the finalisation of ECRIS V system, which is the central element of the digital transformation of the judiciary in Romania. The development of the system, a part of procurement of related software and supporting hardware and the training of users is financed by the Operational Programme Administrative Capacity. Under the recovery and resilience plan, complementary measures shall be financed (such as: procurement of a part of the supporting equipment as part of the virtualisation project which shall facilitate the transition from ECRIS IV to ECRIS V, the setting up of the data centre for the judiciary which shall also host ECRIS V, procurement of PCs and other equipment for the end-users).

This investment underpins the strategy for the development of the judiciary 2022-2025 which includes specific measures to ensure digital interaction of the litigant and any interested entity with the judiciary, electronic signature and electronic seal, availability of improved data communication for e-file (which is an option for litigants to electronically access the judicial files), elaboration of a cross-judicial sector strategy for the digitisation of the physical archive (milestone 421).

The implementation of the investment shall be completed by 30 June 2026.

Investment 5. Digitalisation in the field of the environment

The objective of this investment is to implement an integrated IT system to support sustainable development, improve infrastructure and environmental quality, protect nature and preserve biodiversity.

The investment consists in two main actions:

-the development of the necessary infrastructure for the supervision, control and assurance of forest integrity and the transport of wood. This system shall be implemented in two phases (installation and configuration of the IT system and implementation of security solutions for confidentiality, training, operationalisation of a platform for investigations and alerts). The system shall be integrated with SUMAL 2.0 (the Romanian Wood Traceability System currently under development) and shall monitor legal obligations related to wood harvesting, timely forest regeneration, forest health, forest habitat conservation status, climate change impacts and adaptation to climate change of different forest ecosystems. The system’s data centres shall comply with the “European Code of Conduct on Data Centre Energy Efficiency”.

-the digitalisation of 32 environmental public services (such as transmission of data and information necessary for the calculation and reporting of emission inventories, Natura 2000 reporting, nature Conservation - service on derogations and by-catches of strictly protected species, the management of the national register of zoo gardens, public aquariums and rehabilitation centres, ecosystem management service, the management plans of protected natural areas, the management of the register of authorisations issued by the county environmental agencies for the activities of harvesting / capturing and / or commercialization of the species of wild flora and fauna carried out by individuals and legal entities, the management of notification and authorization procedures in the field of GMMs (genetically modified micro-organisms) and GMOs (genetically modified organisms), public service notifications SEVESO - service for accident / incident notifications sent by economic operators, as well as classification notifications within the meaning of Directive 2012/18/ EU (SEVESO III), with interoperability with IGSU, EMAS registration service - manages organizations that adhere to a community eco-management and audit scheme, EPRTR application for reporting purposes of the economic operators, Service for Industrial Emissions, Service for issuing permits, agreements, authorizations and integrated environmental permits integrated with the document management system, Soil-Underground public service (management of data on potentially contaminated, contaminated and remedy sites), laboratory analysis public service in the field of waste, noise, radioactivity, waste generation and management reporting services, reporting services on the generation and management of waste packaging, end-of-life vehicle reporting service, service on the approval / rejection of cross border waste shipments, service for the registration of producers of batteries and accumulators, service for the registration of manufacturers of electrical and electronic equipment and for reporting data on the generation and management of electrical and electronic equipment waste, chemical reporting service in accordance with art. 36 of Regulation 1907/2006 - REACH and art. 46 and 49 of Regulation 1272/2008 – CLP, safety reports for high level sites, major accident prevention policy for low level sites, emergency plan, domino effect between installations, according to the implementation of the EU SEVESO III Directive, service to request the ecological label for legal entities, service for presenting the cases of environmental damage registered in Romania, monitoring emissions from medium combustion plants, public greenhouse gas emission permit service, registration service for economic operators that are not subject to environmental authorization in order to meet the requirements established by EU Directive 2008/98, service for issuing approvals and evaluation reports (for biocidal products, plant protection products and fertilisers), data reporting service for selective waste collection in public institutions.

The implementation of the investment shall be completed by 30 June 2026.

Investment 6. Digitalisation in employment and social protection

The objective of this investment is to increase the level of digitalisation for several services in the field of labour and social protection, underpinned by equipment purchases and training for the personnel.

The investment consists in several actions:

-digitalisation of the services offered by ANOFM (National Employment Agency) (such as online submission of documents for registration of beneficiaries and award of benefits, possibility to register and attend online trainings and the assessment of professional competences, online advisory sessions) and upgrade of the IT infrastructure.

-digitalisation of the Territorial Labour Inspectorate (ITM) targeting the control activity in the field of labour relations and occupational safety and health (IT system, electronic signatures, simplification of the notification procedure). Furthermore, REGES-ONLINE project is expected to aims to digitise the Territorial Labour Inspectorates relationship with employers, facilitating the transmission of data about employees and their individual employment contracts.

-digitalisation of social assistance benefits managed by the National Agency for Payments and Social Inspection - ANPIS (including functional IT Systems that for serving Minimum Inclusion Income beneficiaries). For ANPIS is envisaged the development of tools for document and information management, real-time communication channels with citizens, digitalisation and processing tools, while ensuring the security of the data. In addition, in synergy with the reform included in component 13 (social reforms) of the Recovery and Resilience Plan, it is expected the operationalisation of the digital platform for the implementation of the Minimum Inclusion Income.

-digital skills trainings for employees of ANOFM, ANPIS and ITM.

The implementation of the investment shall be completed by 30 June 2026.

Investment 7. Implementation of eForms electronic forms in the field of public procurement

The objective of this investment is to operationalise the standard electronic forms to be used for the publication of public procurement notices, which shall streamline the public procurement practices at national and European level, in line with Implementing Regulation (EU) 2019/1780 establishing standard forms for the publication of notices in the field of public procurement and repealing Implementing Regulation (EU) 2015/1986.

The investment shall include an analysis of the legal requirements at EU level and a comparison to the previous forms and shall proceed with the schemes, code lists, business and validation rules and labels, assess the system integration requested, shall adapt e-forms, define and implement the eForms data model, the electronic forms and notifications. Furthermore, the eForms shall be integrated with other tools and services (such as the Business Intelligence system of the National Public Procurement System) and trainings shall be provided for users.

The implementation of the investment shall be completed by 30 June 2023.

Investment 8. Qualified electronic identity card and digital signature

The objective of this investment is to support the transition and adoption of the electronic identity card (e-ID card) by the Romanian citizens. The investment is key for facilitating the digital interaction between the public/private entities and citizens.

The investment is expected to deliver 8,5 million electronic identity cards during the national recovery and resilience plan implementation. The e-ID card shall store two digital certificates: i) one which shall make possible the authentication for using public administration online services and ii) an optional one for the qualified electronic signature issued by qualified certification service providers.

The implementation of the investment shall be completed by 30 June 2026.

Investment 9. Digitalisation of the non-governmental organisations sector

The objective of this investment is to support the digital transformation of the non-governmental organisations (NGOs) and to increase the level of digital literacy among the employees.

The investment consists of a call for projects and shall award 200 grants (of maximum EUR 70 000 for a period of implementation of maximum 30 months) to NGOs for investments in digital infrastructure, digital skills of staff and volunteers, development of Customer Relationship Management platforms, and purchase of equipment. In addition, under this investment a Resource centre for the digital transformation of NGOs shall be established. The centre shall support the development of IT services and open-source software solutions and technical assistance in the implementation of digital transformation strategies, centralising existing digital resources in an open digital bookshop enabling easier access, assistance, e-learning and training, communities of practice, and customised support in digital transformation processes.

The implementation of the investment shall be completed by 30 June 2025.

Investment 10. Digital transformation in civil service management

The objective of this investment is to improve the civil service by reducing bureaucracy and increasing the quality of the public services through a well-trained and professional civil service. This investment is linked to component 14 (Good governance).

The investment consists of operationalising two interoperable platforms:

-e-ANFP – development and extension of the civil service management platform (central, territorial, local level) for all career processes (recruitment, assessment, promotion, exit from the public system, based on a standardised competency framework and job descriptions) and interconnection with collaborating institutions.

-SIMRU (Integrated Human Resources Management System) – development of the internal management platform for public authorities for human resources processes (personnel data management, organisational management, time management, objective setting, and reporting).

The implementation of the investment shall be completed by 31 December 2025.

Investment 11. Implementation of a scheme to support the use of communication services through different types of instruments for beneficiaries, with a focus on white areas

The objective of this investment is to provide coverage of very high-speed internet access to areas where the market cannot deliver these services on its own (villages, including disadvantaged areas). The minimum speed shall be at least 100 Mbps upgradeable and the networks shall be FTTB/H and/or 5G.

The investment consists of two priority streams: i) the absolute priority which targets totally white rural municipalities not served with fixed networks, but where there is latent demand or socio-economic drivers and ii) the underlying priority which aims for fixed networks where speeds need to be improved and the market fails to cover these needs. The investment shall finance passive infrastructure and active network elements, backhaul and access segment, the setting up of new networks or upgrading existing ones.

The implementation of the investment shall be completed by 31 December 2025.

Investment 12. Ensuring cybersecurity protection for both public and private IT & C infrastructures with critical value for national security, using smart technologies

The objective of this investment is to strengthen the capacity of the Cyberint national centre and to ensure the security of the infrastructures of a minimum 101 institutions and entities with critical ICT infrastructures at national level (ministries, agencies, energy suppliers/distributors, health, transport, water supply).

The investment consists of several lines of action:

-Providing cybersecurity solutions, equipment and training for entities selected based on the degree of vulnerability to cyber-attacks, potential impact of a cyber-attack on the services provided, the likelihood to be targets to major cyber-attacks, national/regional coverage, and the number of recipients of services provides by the entities.

-Development of the capacities of the Cyberint national centre by operationalising a platform for security and channeling of data for transfer between networks of different confidence levels and increasing the investigative capacity of the centre.

The implementation of the investment shall be completed by 31 December 2025.

Investment 13. Development of security systems for the protection of the government spectrum

The objective of this investment is to secure the wireless communications in central and local public institutions and authorities. In particular, the investment aims to implement wireless vulnerability prevention mechanisms in communication systems, develop wireless vulnerability detection solutions in communication systems, and create a unified wireless vulnerability management system in communication systems.

The investment shall be implemented by the creation of a new network of sensors distributed at the national level, placed on dedicated reception sites to detect and alert automatically in case of disturbances in the radio governmental spectrum.

The implementation of the investment shall be completed by 31 March 2026.

Investment 14. Increase of the resilience and cybersecurity of Internet Service Provider infrastructure services provided to public authorities in Romania

The objective of this investment is to increase the resilience of the Internet Service Provider (ISP) infrastructure for the public authorities, while ensuring their cybersecurity.

The investment consists in update and expansion of the gigabit internet access network for the public administration, upgrade of the cybersecurity capabilities, securing the ISP services (DNS, web, e-mail, hosting). Every county of Romania shall be connected to a national Internet distribution network.

The implementation of the investment shall be completed by 31 December 2024.

Investment 15. Creation of new cybersecurity skills for society and the economy

The objective of this investment is to support the development of cybersecurity skills both for students, as well as for public and private players.

The investment consists of two main actions:

-the implementation of cybersecurity trainings for 5 000 teachers (at pre-university and university levels) who shall pass their newly acquired knowledge to students all around Romania. This part of the investment shall raise the awareness of cybersecurity and shall contribute to a longlasting effect for the economy and society.

-a toolkit to increase the cybersecurity maturity for 1 000 players shall be developed based on an initial assessment which shall focus on operational, technology and skills of the target group.

The implementation of the investment shall be completed by 30 June 2026.

Investment 16. Advanced digital skills training programme for civil servants

The objective of this investment is to increase the advanced digital skills of the civil servants, aiming to support the digitalisation of the public services by improving the availability of qualified workforce for internal IT&C operations.

The investment consists in trainings for advanced digital skills (database management, system management, business analysis, data analysis, programming) for 32 500 civil servants (out of which 2 500 seniors). A training needs analysis shall be conducted beforehand.

The implementation of the investment shall be completed by 30 June 2026.

Investment 17. Funding schemes for libraries to become digital skills hubs

The objective of this investment is to enhance the basic digital skills of communities with limited access to digital training and of marginalised groups. The investments consist of the reconversion of 105 libraries into hubs for the development of digital skills, underpinned by additional funds for 1 030 libraries to change/upgrade their IT equipment. Under this investment, it is expected that basic skills such as digital literacy, communication, media literacy, digital content creator, digital security, and digital entrepreneurial education shall be developed for 100 000 citizens from disadvantaged communities.

The implementation of the investment shall be completed by 30 June 2026.

G.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

142

Reform 1. Development of a unitary framework for defining the architecture of a government cloud system

Milestone

Task-force to implement and monitor Digital Transformation reforms and investments established and operational

Entry into force of the ministerial Order for the establishment of the Task force

Q4

2021

The operationalisation of a temporary Digital Transformation Task force that shall employ during the implementation period of the Recovery and Resilience Plan 17 highly specialised contractual posts in the field of digital technologies and project management specialists. The main tasks of this unit are:

-the development and implementation of the sectoral components of the national recovery and resilience plan;

-monitoring the implementation of the digital related reforms and investments within the national recovery and resilience plan focusing on key projects, and proposing immediate remedial measures for critical blocks in close collaboration with the other institutions involved;

-development of project performance management systems in covering specific objectives of the digital pillar;

-development and regulation of the regulatory, methodological framework and of the functional, operational and financial procedures in its field of activity;

-development of tools for implementing the digital related policies;

-project management and reporting of all the stages of completing the objectives established within the digital related measures in the national recovery and resilience plan;

-fulfilment of any other attributes necessary to cover the implementation of the digital related national recovery and resilience plan reforms and investments.

The task force shall be under the coordination of a director, subordinated to the minister who holds the portfolio of digitalisation.

143

Reform 1. Development of a unitary framework for defining the architecture of a government cloud system

Milestone

Completed analysis for the options for the government cloud architecture

Output report with assessment and recommendations submitted

Q1

2022

The analysis shall present:

-the strategic and technological options and the legislative and regulatory package to determine the achievement of the Government Cloud, including interoperability rules and government data governance model;

-the possibilities for the construction, delivery, installation and operation of civilian and technological infrastructures in accordance with the deadlines laid down in the Plan;

-mapping of public digital applications/services currently offered by state authorities of, design of processes and procedures implemented in production and/or at implementation stages;

-the cloud development/migration plan of the mapped applications.

144

Reform 1. Development of a unitary framework for defining the architecture of a government cloud system

Milestone

Entry into force of the law for the governance of cloud services for the government area

Provision in the law indicating the entry into force of the cloud services governance law

Q2

2022

The new law shall establish a general framework for the development and management of a cloud infrastructure, consisting of a set of information technology, communications and cybersecurity resources and services, shared by the public sector in accordance with the European Cloud Computing Strategy and aligned with the National Interoperability Framework.

145

Reform 1. Development of a unitary framework for defining the architecture of a government cloud system

Milestone

Entry into force of the interoperability law

Provision in the law indicating the entry into force of the interoperability law

Q2

2022

The new law shall:

-be aligned with the provisions of the European Interoperability Framework 12 ;

-put in place a framework/governance to support the selection of relevant standards and rules for the development of applications and services by the public sector in a secure and sustainable environment;

-operationalise the migration and integration into existing data structures of data, while ensuring interoperability;

-ensure that the implementation of functionalities involves aligning the national identification and authorisation infrastructures with EU Member States in a transnational scheme, in accordance with the European rules laid down in the eIDAS Regulation (EU) 2014/910 on electronic identification and trust services for electronic transactions in the internal market;

-take into account the once only principle embedded in the Single Digital Gateway Regulation (EU) 2018/1724.

146

Reform 2.

Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high-capacity networks

Milestone

Entry into force of the 5G network security law

Provision in the law indicating the entry into force of the 5G security law

 

 

 

Q2

2021

Entry into force of the 5G network security law. The main provisions shall target communications providers which shall only be able to use technologies, equipment and software in 5G networks from manufacturers authorised in advance by decision of the Prime Minister, on the basis of the opinion of the Supreme Council of National Defence. Each manufacturer of 5G equipment and software shall have to apply for this authorisation, which shall be submitted to the Ministry responsible for Communications.

147

Reform 2.

Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high- capacity networks

Milestone

Publication of the call for tender for the authorisation of telecommunications operators to grant 5G licences

Call for tender is published on ANCOM’s website

 

 

 

Q2

2022

Publication and organisation of a competitive selection procedure (auction) for granting the so called ”5G licenses” (i.e. in the 700 MHz, 1500MHz and 3,4 – 3,8GHz bands).

Long term licences are envisaged as per the European Electronic Communications Code criteria, to efficiently stimulate 5G, promote competition and end-users’ rights.

The auction procedure shall build on the experiences with past spectrum auctions in Romania (2012 and 2015) and with similar recent proceedings in the EU, and shall incorporate competitive safeguards, market shaping mechanisms and conditions attached to the licences, all of them fit for the Romanian market specificities and dynamics.

148

Reform 2.

Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high-capacity networks

Milestone

Recommendations from the EU connectivity toolbox are implemented

Q3

2022

Implementation of Romania’s Roadmap in application of the Connectivity Toolbox 13 is a joint multi-stakeholder effort.

As per draft roadmap currently under analysis between relevant ministries, Romania shall implement for 12 out of 39 recommendations:

24 – Promote adequate reserve prices

25 – Timely availability of 5G harmonised bands

28 – Individual authorisation regime for the 24,25-27,5GHz frequency band

31 – Structure of recurrent spectrum fees to incentivise roll-out

38 – Coordinated and targeted communication for informing and educating on 5G implementation

39 – Inform the public on the compliance of Radio Base Stations installations with applicable EMF safe limits.

All these recommendations are expected to be finalised by 2021, while

2 – Provide model regulations on electronic communications network deployment

3 – Provide informative materials and workshops for municipalities and other competent authorities

11 – Ensure the availability of information from different sources and enhance transparency of planned civil works

26 – review National Spectrum Plans on a regular basis

32 – Use financial aid as a complement to incentivise investments

35 – Make use of harmonised technical conditions developed by the European Conference of Postal and Telecommunications Administrations (CEPT)/Electronic Communications Committee (ECC), if common dedicated frequency ranges are deemed necessary

All shall be finalised in 2022.

149

Reform 2.

Transition to EU 2025 connectivity targets and stimulate private investment for the deployment of very high-capacity networks

Milestone

Assignment of the rights of use of radio spectrum

Rights of use assigned

 

 

 

Q3

2022

The “5G” radio frequency licences shall be assigned based on the results of the competitive selection procedure /auction in milestone 147.

150

Reform 3. Ensuring cybersecurity of public and private entities owning critical value infrastructure

Milestone

Adoption of the National Cybersecurity Strategy 2021-2026

Adoption of the National Cybersecurity Strategy 2021-2026 by the government

Q4

2021

The National Cybersecurity Strategy 2021-2026 shall be adopted and shall include provisions regarding:

-regular assessments and updates of the cybersecurity regulatory and institutional framework,

-strengthening the public-private-academic partnership to increase the cyber resilience of society as a whole,

-development of the capacity to respond to cyber-attacks and the resilience of systems, networks and services

-consolidation of the role of Romania in the cybersecurity architecture at international level.

151

Reform 3. Ensuring cybersecurity of public and private entities owning critical value infrastructure

Milestone

Entry into force of the law on Defence and Cyber Security of Romania

Provision in the law indicating the entry into force of the law on Defence and Cyber and Security of Romania

Q4

2022

The law on Defence and Cyber Security of Romania shall establish the legal and institutional framework for organising and conducting activities in the fields of cybersecurity and cyber defence, cooperation mechanisms and responses of institutions in the fields concerned.

152

Reform 4.

Increasing digital competence for public service and digital education throughout life for citizens

Milestone

Entry into force of the ministerial order of the Minister of Labour and the National Institute of Statistics President for the definition of new digital occupations in the Classification of Occupations (COR)

Provision in the order of the Minister of Labour and National Institute of Statistics President indicating the entry into force of the amendment defining new digital occupations in the COR.

 

 

 

Q3

2022

The ministerial order of the minister of Labour and the National Institute of Statistics President shall define the new digital occupations at the level of the Romanian Classification of Occupations (COR) equivalent to those existing in the countries of the European Union with good practices in digitalisation. A diagnosis study/analysis shall be carried out to provide a forecasting for the next five years of the labour needs in the context of the digital transformation of the economy and the transition to industry 4.0 including recommendations for defining new digital occupations in the official classification of occupations.

153

Investment 1.

Deployment of the Government Cloud Infrastructure

Milestone

Signature of the contract to implement the investment based on the call for tenders procedure to implement the investment

Signature of contract

Q2

2022

Signature of the contract for the implementation of government cloud infrastructure.

The institutions responsible for the call for tender and the implementation of this investment are the Special Telecommunication Services and the Authority for the Digitization of Romania.

The implementation of the Government Cloud shall involve at least the following stages:

-construction of Tier IV by design data centres for the two main centres and Tier III by design for the secondary ones;

-providing specific communications infrastructure and information technology (optic fibre cables and high-capacity communications equipment);

-development / expansion of the electricity supply network for each data centre in order to ensure redundancy and electricity demand;

-achieving a scalable and redundant air conditioning infrastructure, energy efficient for each data centre;

-installation of the inert gas fire detection and extinguishing system to ensure the protection for the entire infrastructure of each data centre;

-implementation of the physical security system (access control, video monitoring, anti-burglary) for the developed infrastructure;

-implementation of the infrastructure monitoring and management network within the realized facility;

-realization of scalable and high availability IT&C infrastructure (processing equipment, storage, communications, virtualization software) within each data centre;

-acquisition of the necessary licenses and specialized equipment for the perimeter cyber security.

-Security shall be provided by the government cloud infrastructure administrator.

154

Investment 1.

Deployment of the Government Cloud Infrastructure

Target

Public institutions connected through the government cloud

Number

0

30

Q4

2024

At least 30 public institutions connected and fully using the Government Cloud, in accordance with the provisions under milestone 153.

Public institutions shall exchange data with each other through the Government cloud infrastructure.

155

Investment 1.

Deployment of the Government Cloud Infrastructure

Target

Tier III and Tier IV data centres by design, infrastructure and technologies for cloud services

 

Number

0

4

Q4

2025

Two tier III and two Tier IV data centres by design, hardware and software cloud (Infrastructure-as-a-Service - IaaS/Platform-as-a-Service - PaaS/Software-as-a Service - SaaS) functional, in accordance with the provisions under milestone 153.

The Data Centres shall comply with the “European Code of Conduct on Data Centre Energy Efficiency”.

156

Investment 2.

Cloud development and migration

Target

Governmental digital service applications migrated into Infrastructure-as-a-Service - IaaS/Platform-as-a-Service - PaaS/

 

Number

0

5

Q2

2025

Number of government cloud-native digital service applications in PaaS and migration of existing cloud-ready/virtualised in IaaS, following the analysis developed under milestone 143.

The applications/services shall be developed for public authorities/ institutions in order to help them to provide the public services that are their responsibilities, so are not used for economic activities.

157

Investment 2.

Cloud development and migration

 

Target

Governmental digital service applications migrated into Infrastructure-as-a-Service - IaaS/Platform-as-a-Service - PaaS

 

Number

5

30

Q2

2026

Number of government cloud-native digital service applications in PaaS and migration of existing cloud-ready/virtualised in IaaS, following the analysis developed under milestone 143.

The applications/services shall be developed for public authorities/ institutions in order to help them to provide the public services that are their responsibilities, so are not used for economic activities.

158

Investment 3. Development of eHealth and telemedicine system

 

Target

Public health institutions digitalised

 

Number

0

60

Q2

2023

At least 60 public health institutions shall be digitalised.

Institutions with responsibilities in the field of health include: public health directorates, public health institutes, the national medicinal product agency, the national public health and management school and the Ministry of Health.
The digitisation process shall include:
1. Investing in IT systems and digital infrastructure (IT equipment, licences, IT software, communication systems) for the following institutions: Ministry of Health, District Public Health Authorities (Health statistics, Health administration (health planning) and decision support (Spending review, National health accounts, HR management, HR – register, decision support); County ambulance services (including the Bucharest - Ilfov Ambulance Service), the National Institute of Public Health, the National Institute of Sports Medicine, the National Institute of Transfusion Hematology "Prof. Dr. CT Nicolau", the National Transplant Agency, the Central Storage Office for Special Situations, National Register of Voluntary Hematopoietic Stem Cell Donors, National Agency for Medicines and Medical Devices, forensic institutes, National Center for Mental Health and Anti-Drug Control Bucharest, National School of Public Health, Management and Training in Health Bucharest. Surveillance system for communicable diseases, Health statistics, decision support, Registers for transplant for stem cells).

2. Technical assistance for the development and integration of digital health solutions in the health system.

3. Training for staff to learn how to operate the IT applications. The training shall be supported from the national recovery and resilience plan for 2 970 employees.

Priority shall be given to healthcare providers in remote or poor areas.

159

Investment 3. Development of eHealth and telemedicine system

Milestone

Telemedicine system deployed

Q4

2024

The telemedicine system shall be accessible to a broad range of relevant healthcare providers, with the possibility to be deployed widely across the country, with a focus on rural areas and small urban areas.

The rural areas and small urban areas where the telemedicine system shall be deployed in shall be selected based on several factors, including:

-current access to healthcare (measured by number of general practitioners or family doctors/population), by prioritising the areas with less access to healthcare.

-less developed regions (as per EU classification, measured by GDP/capital), by prioritising areas outside Bucharest and Ilfov County.

The system shall ensure both real-time remote consultations via videoconferencing and live data transmission or asynchronous connections.

The deployment of the telemedicine system shall ensure that at least 200 000 telemedicine consultations shall be provided in the last year (Q3/2025-Q2/2026) of the RRP implementation.

160

Investment 3.

Development of eHealth and telemedicine system

Milestone

New PIA (Health insurance IT platform) is operational

PIA (Health Insurance IT platform operational

Q2

2025

The new PIA (Health Insurance IT platform) is expected to:

-ensure a user-friendly and accessible environment for users, including those with disabilities;

-improve the interconnection and interoperability;

-allow for new functionalities (e.g. digitalisation of medical related documents);

-optimise data flows, electronic monitoring of general objectives, specific objectives, activities and performance indicators assumed at the level of the National insurance house/healthcare provider.

The platform includes the following characteristics: Update of the Single Integrated Informatics System (SIUI), the National Health Insurance Card System (CEAS) and the National Electronic Prescribing System (SIPE).
The update aims to replace servers, rewrite their applications in modern ready –to-cloud technology and replace other IT and communications devices.
SIUI contains Online Validation Modules of Services Provided for Settlement on Each Type of Provider (Specialist Outpatient Hospitals, Specialist Physicians, Family Physicians, Pharmacies, Medical Device Providers).

161

Investment 3. Development of eHealth and telemedicine system

Target

Digitalisation of 200 public health facilities

Number

0

200

Q2

2025

200 public health facilities shall benefit from:

-IT systems and digital infrastructure of public health units. Hospitals IT systems shall include patient health record management, admission and discharge, pharmacy, warehouse management, facility management, Diagnosis Related Group (DRG) grouper and DRG coding support, health statistics, financial management, cost accounting, quality management, payroll and HR management, financial reports for the financing agency, decision support and ambulatory IT system;

-Strengthening telemedicine and mobile patient monitoring systems. The Hospital IT systems should be interoperable with the telemedicine systems (monitoring module and ambulatory specialist consultation module) and the specialists from the hospital ambulatories should be able to provide teleconsultations and also to monitor outpatients and chronic patients with the support of the homecare providers or family doctors/general practitioners;

-Technical assistance for the development and integration of digital health solutions in the health system.

-Training for staff to learn how to operate the IT applications. The training shall be supported from RRF for 3 000 doctors.

162

Investment 3.

Development of eHealth and telemedicine system

Target

Healthcare providers connected to the new PIA platform

Number

0

25 000

Q3

2025

25 000 healthcare providers (Hospitals, outpatient specialist, ambulatories, laboratories, family doctors, pharmacies, medical devices providers, home care) shall be connected to the new PIA platform.

163

Investment 4. Digitalisation of the judiciary

Milestone

Virtualization and centralization of business applications operationalised

National (centralized) Electronic File (e-file) operational and judicial case management virtualized in fewer location

Q2

2023

In order to reduce the operational risk of the existing case management system (i.e., the Electronic Court Record Information System, version ECRIS IV) and to introduce a modern alternative for electronic access of the case files (“e-file”), this investment shall:

-use “virtualization” for reducing the number of servers from around 270 locations to 60 locations (not full centralization due to limitation on data communication for short term and old technology for ECRIS IV);

-“centralize” the 4 existing extensions of e-file in a single national “e-file” through which litigants shall be able to easily and securely access documents in court files.

Also, a major strategic objective is to accelerate and ensure an easy transition to next version of ECRIS (ECRIS V).

Thus, the concrete aim of the “virtualisation and centralization” proposed in national recovery and resilience plan is the technological upgrade of the IT infrastructure of the judiciary by:

-increasing the data transmission capacity in the WAN (increasing the bandwidth), needed for the proper functioning of the electronic case management system in a centralised configuration;

-ensuring an adequate processing and storage capacity at the level of tribunals and courts of appeal in order to centralise justice applications and achieve efficient management of IT resources in courts;

-increasing the security and availability of services offered to the general public by implementing the National Electronic File (e-file).

164

Investment 4. Digitalisation of the judiciary

Milestone

Operationalisation of ECRIS V (electronic case record and information system) completed

ECRIS V system operational and functional

Q4

2025

The central element of the digital transformation of the judiciary is the implementation of a new case management system (ECRIS V), which shall allow, on one hand, the digital interaction of the litigant and any interested entity with the judiciary, and on the other hand, a better and enlarged digital interaction between the institutions at level of the judicial system and between them and other adjacent institutions.

The new version, ECRIS V shall have a centralized architecture and shall allow also the digital interaction of the litigant and any interested entity with the judiciary, and a better and enlarged digital interaction between the institutions at level of the judicial system and between them and other adjacent institutions.

165

Investment 4. Digitalisation of the judiciary

Milestone

Central public authorities in the judicial field digitalised

Data transmission capacity in the WAN of central public authorities in the judicial field increased

Q2

2026

For improving e-government and accelerating digital transformation in the judicial sector, public authorities in the field of central justice shall benefit from the following technological upgrades which include:

-LAN and WAN communications. This shall allow for better videoconferencing in line with the latest legislation adopted during the COVID pandemic;

-IT Security equipment and solutions for cyber protection;

-IT terminals / peripherals

-upgrading and expanding the number of video conferencing systems from 400 to 600;

-specialized equipment – for complex legal investigation such as audio and video surveillance, specialized equipment for critical processes (digital microscopes for forensic expertise).

166

Investment 4. Digitalisation of the judiciary

Milestone

Data centre operational

Data centre is established and operational

Q2

2026

A new data centre is operationalised for the use of the Ministry of Justice, the Public Ministry and the subordinated institutions, interoperable with the government cloud developed under the national recovery and resilience plan.

167

Investment 5.

Digitalisation in the field of the environment

Milestone

Increased capacity to supervise, control and monitor forests through an integrated IT system

The system to combat illegal logging is established and operational

Q4

2024

The system shall be integrated with SUMAL 2.0 (the Romanian Wood Traceability System currently under development) and shall monitor legal obligations related to wood harvesting, timely forest regeneration, forest health, forest habitat conservation status, climate change impacts and adaptation to climate change of different forest ecosystems.

Forest cadastre shall be included as well as ownership and administration rights.

The system’s data centres shall comply with the “European Code of Conduct on Data Centre Energy Efficiency” and integrate the circularity of building designs and construction techniques.

168

Investment 5.

Digitalisation in the field of the environment

Target

Digitalised public environmental services

 

Number

0

32

Q2

2026

At least 32 environment related public services shall be digitalised and conducted online to include:

-Transmission of data and information for emission inventories.

-Natura 2000 reporting and Nature Conservation services

-Management of environmental registers, notification and authorisation procedures and permits aiming to streamline services in waste managements for citizens and businesses.  

169

Investment 6. Digitalisation in employment and social protection

Milestone

Entry into operation of REGES online system

REGES online system functional

Q4

2024

The REGES-ONLINE IT system shall be implemented and interoperable ensuring access by public authorities and institutions to register data at Application Programming Interface (API) level.

REGES-ONLINE project aims to digitise the Territorial Labour Inspectorates relationship with employers, facilitating the transmission of data about employees and their individual employment contracts.

170

Investment 6. Digitalisation in employment and social protection

Target

Implementation of digital services in the field of employment and social protection

 

Number

0

3

Q4

2025

Entry into operation of e-government digital services in the field of work and social protection:

-Digitization of the services offered by the Public Employment Service (ANOFM) in order to respond efficiently to the new needs of the labour market by optimizing operations for the benefit of citizens and training digital skills for managing specific activities (such as online submission of documents for registration of beneficiaries and award of benefits, possibility to register and attend online trainings and the assessment of professional competences, online advisory sessions) and upgrade of the IT infrastructure.

-digitalisation of control activity in the field of labour relations and occupational safety and health.

-digitalisation of social assistance benefits managed by the National Agency for Payments and Social Inspection - ANPIS (including functional IT Systems that for serving Minimum Inclusion Income beneficiaries). Operationalisation of the digital platform for the implementation of the Minimum Inclusion Income –VMI- shall allow, inter alia;

ocarrying out all the operations related to the implementation of the MII, with modules allowing the possibility of a case by case management approach, including activation measures, in an intuitive/user friendly manner

ointeroperability with other relevant data bases, e.g. of the Ministry of Finance, Ministry of Labour, Ministry of Education, Public Employment Service.

171

Investment 6. Digitalisation in employment and social protection

Target

Number of employees participating in trainings on digital skills

Number

0

4 777

Q2

2026

Number of employees participating in trainings on digital skills:

-National Employment Agency: 1 200 employees

-National Agency for Payments and Social Inspection: 1 595 employees.

-Labour Inspection and territorial labour inspectorates: 1 982 employees

172

Investment 7. Implementation of eForms e-forms in public procurement

Milestone

Implementation of electronic national forms in public procurement procedures in line with EU legislation

Electronic standard forms for procurement procedures operational

Q2

2023

The investment shall ensure the implementation of the Implementing Regulation (EU) 2019/1780 (eForms) in the Romanian Public Procurement service SEAP. The implementation of eForms is not expected to affect the end user, since the changes shall be done in the back-end. The investment aims to ensure data extraction and encapsulation specifically to the new technological requirements at the level of the directive.

173

Investment 8.

Qualified electronic identity card and digital signature

Target

Citizens for whom an e-ID card is issued

 

Number

0

4 500 000

Q4

2024

The identity card shall comply with the European Commission’s requirements on document security, in line with the objectives set out in Regulation (EU) 1157/2019. The electronic identity card shall store two digital certificates:

-a mandatory one for advanced electronic signature, registered on all electronic identity cards, valid in Romania.

-an optional certificate for qualified electronic signature issued by qualified certification service providers (domestic/non-national), valid also for services of third parties, valid in Romania and in the EU.

174

Investment 8.

Qualified electronic identity card and digital signature

Target

Citizens for whom an e-ID card is issued

 

Number

4 500 000

8 500 000

Q2

2026

Citizens who shall hold an electronic identity card, in line with the description of target 173.

175

Investment 9. Digitisation of the non-governmental organisations sector

Target

Completed projects for NGOs digitalisation

Number

0

200

Q4

2024

Successfully completed projects in the field of digitalisation and digital transformation of NGOs.

The selected projects shall support NGOs to digitise their activities by investing in digital infrastructure, increasing the digital competence of staff and volunteers in delivering remote services to beneficiaries, developing platforms and CRM (Customer Relationship Management)​ solutions.

The selection process shall be based on the following criteria: the project relevance for the digital transformation and coherence; methodology and feasibility of the project; sustainability; proposed budget: the foreseen costs are economic, justified and correlated with the activities proposed for digitalisation. Applicant and the proposed project team have the experience, expertise, motivation and capacity for implementing the project.

The support shall be up to EUR 70 000 per project for a period of implementation of maximum 30 months.

176

Investment 9.

Digitisation of the non-governmental organisations

Milestone

Resource Centre for the Digital Transformation of the NGOs

Resource Centre is established and operational

Q2

2025

The Resource Centre for NGO digitalisation shall provide:

-development of IT services and open-source software solutions and technical assistance in the implementation of digital transformation strategies

-centralising existing digital resources in an open digital bookshop

-enabling easier access
assistance, e-learning and training

-communities of practice
customised support in digital transformation processes.

177

Investment 10.

Digital transformation in civil service management

Milestone

Interactive and collaborative platforms for standardised human resources management in central public administration are established and operationalised

Operationalised platforms

Q4

2025

The collaborative platforms shall cover all processes from on-boarding-recruitment to evaluation, promotion, exit from the public system, based on the model of competency frameworks and standardised job descriptions.

178

Investment 11.

Implementation of a scheme to support the use of communication services through different types of instruments for beneficiaries, with a focus on white areas

Target

Villages in white areas connected to very high speed internet

 

Number

0

945

Q4

2025

945 villages in white areas shall be connected to very high-speed internet access services at a fixed location where the market cannot deliver services. The villages shall be prioritised as follows:

-absolute priority for the rural or remote municipalities not served with fixed networks.

- underlying priority shall be given to rural and remote localities underserved with fixed networks.

The minimum speed shall be at least 100 Mbps upgradeable and the networks shall be FTTB/H and/or 5G.

179

Investment 12.

Ensuring cybersecurity protection for both public and private ITC infrastructures with critical value for national security, using smart technologies

Target

Entities with secured IT&C infrastructures

 

Number

0

101

Q3

2025

Securing the infrastructure of 101 public and private entities, which have IT&C infrastructures with critical value for national security: entities in the governmental field, in the energy field (such as gas or electricity suppliers / distributors), water supply and sewerage, essential services, health and transport (such as airports, ports). Among these, 59 entities are included in the national cyber security system, with the purpose of increasing the level of security by adding new technologies and solutions and 42 are beneficiaries to be identified according with the criteria below. Furthermore, 9 entities out of the 101 which have OT infrastructures, shall benefit from cyber security solutions for industrial control (ICS).

The infrastructures shall be selected by:

-taking into account the probability of being targeted by APT (Advanced Persistent Threat) cyberattacks,

-the number of users and the impact that such an attack would have on the infrastructure and implicitly on the economic and social environment. For each new entity, a site-survey shall be carried out, which shall provide an exhaustive look at the cyber security needs of IT and / or OT networks.

-the complexity of the OT networks held,

-degree of vulnerability to cyber-attacks (e.g. remote control of industrial systems/subsystems),

-number of beneficiaries of services provided by those entities.

At least the following elements shall be operationalised for the 101 entities:

-an Advanced Vulnerability Detection System in Information Systems and Communication Equipment (software and hardware solutions);

-an integrated system to identify TTPs associated with cyber-attacks on network and information systems (software solutions and hardware);

-a Complex Security Platform for Automatic Analysis and Processing of Cyber Incidents (Software and Hardware Solutions).

180

Investment 12. Ensuring cybersecurity protection for both public and private ITC infrastructures with critical value for national security, using smart technologies

Milestone

Cyberint national centres strengthened

Additional capacities

Q4

2025

The Cyberint national centre structure shall develop the capacity for integrated cybersecurity protection of ICT IT and OT infrastructures Furthermore, the centre shall benefit from:

-Development of a technical infrastructure to identify, monitor, manage and respond to cybersecurity incidents aimed at protecting ICT infrastructures of critical value for national security that do not/no longer benefit from the protection offered by the National System for Protection of ICT Infrastructures of National Interest against threats from cyberspace, with a complementary role.

-Establishment of a national cybersecurity risk assessment and management platform of new technologies.

-The implementation of an infrastructure for the security of radio communications, which shall increase the level of protection and the availability of communication services to public authorities providing digital services to citizens.

-a platform for security and channelling of data for transfer between networks of different confidence levels;

-Increase the investigative capacity of the NCC (software and hardware solutions).

In addition, a national programme to prepare economic operators and competent authorities for cyber and hybrid crisis situations by organising exercises shall be operationalised and crisis management plans developed.

181

Investment 13.

Development of security systems for the protection of government spectrum

Target

Reception sites operationalised at national level

 

Number

0

65

Q1

2026

Reception sites operationalised at national level: STS (The Special Telecommunications Service) shall develop a new network of sensors distributed at the national level, placed on dedicated reception sites to detect and alert automatically in case of disturbances in the radio governmental spectrum. The availability of the governmental spectrum shall be ensured and the continuity of the radio governmental services shall be provided to citizens and public entities, based on G2G/G2B/G2C model.

182

Investment 14.

Increase of the resilience and cybersecurity of Internet Service Provider infrastructure services provided to public authorities in Romania

Target

Hubs that shall allow access to Internet Service Provider (ISP) services for central and local public-interest institutions and entities

 

Number

0

41

Q4

2024

Every one of the 41 counties in Romania shall be assigned one hub.

Number of high-capacity secure hubs connected to a national Internet distribution network, with multiple Tier I suppliers and associated Security mechanisms, which ensure the access of central and local public authorities to Internet and Internet-associated services.

Security services provided:

-Anti-dos (denial-of-service) protection at multiples of 10Gbps

-Associated Computer Emergency Response Team (CERT) services (security audiences, monitoring of security events throughout the network, response to security incidents)

-Associated Security Operations Centres services (notification and escalation mechanisms for beneficiaries)

-Reputation and filtering mechanisms for malicious traffic based on reputation and malicious residence at the level of DNS services provided to beneficiaries

-Sandbox analysis for the provided services.

183

Investment 15. Creation of new cybersecurity skills for the society and the economy

Target

Trainers participating in cyber security training

 

Number

0

5 000

Q2

2026

Completed training of cyber security trainers, applicable in the priority areas of the economy and society and specific to graduates and students (tools made available free of charge to firms and public administration for cyber courses, more rigorous control of data protection and the security of the use of new technologies and in the environment).

184

Investment 15.

Creation of new cybersecurity skills for the society and the economy

Target

Entities receiving the Government toolkit and services to increase the level of cyber security maturity

Number

0

1 000

Q2

2026

This investment has the following objectives:

-Developing a National programme for the analysis, review and documentation of cyber skills needs and their consequences on the priority areas of the economy and society.

-Evaluation, documentation and monitoring the level of maturity in cybersecurity (operational, technology, skills) for 1 000 key economic and public administration actors (including companies, SMEs, schools, hospitals, central and local government bodies).

Creating and delivering a "government toolkit and services" to increase the level of cyber security maturity of the 1 000 key players identified.

The key players shall be selected based on the following two criteria:

-actors selected to be representative for the domains specified by the NIS Directive and the transposition of the NIS Directive in the Romanian law (i.e. Law 362/2018)

-actors selected based on a cybersecurity maturity assessment already performed by the Romanian national competent authority in cybersecurity (i.e. CERT-RO) based on a survey that shall include a maturity self-assessment.

185

Investment 16.

Advanced digital skills training programme for civil servants

Target

Digitally trained civil servants

 

Number

0

32 500

Q2

2026

30 000 public officials trained to acquire advanced digital skills (e.g. database administrator (SQL, MySQL); system manager; business analysts; data analyst; programmers on various platforms) and 2500 senior civil servants with leadership training and talent management

186

Investment 17.

Funding schemes for libraries to become digital skills hubs

Target

Libraries converted in digital hubs

Number

0

1 135

Q4

2025

At least 1 135 libraries shall be digitalised, as follows:

-105 libraries including 5 central county library offices and 100 rural or municipal libraries shall be renovated and equipped with computers and technical equipment. The renovation shall be done in compliance with the ‘do no significant harm’ Technical Guidance (2021/C58/01).

-1 030 libraries shall benefit from new or upgraded IT equipment.

187

Investment 17.

Funding schemes for libraries to become digital skills hubs

Target

Citizens who have received training for digital competences development

 

Number

0

100 000

Q2

2026

Citizens from disadvantaged communities who have received training for developing basic digital skills in libraries converted to digital hubs. The basic digital skills shall include digital literacy, communication, media literacy, digital content creator, digital security, digital entrepreneurial education.

G.3.    Description of the reforms and investments for the loan

Investment 18. Digital transformation and Robotic Process Automation in public administration

The objective of this investment is to support the digital transformation, increase productivity and resilience, reduce errors and time to process (citizens) requests the public administration by adopting Robotic Process Automation solutions (automation of laborious, repetitive and rules-based tasks).

The investment consists in the deployment of advanced technologies, redefining business process reengineering and improving the decision-making processes for the public sector. At first, a consultant shall analyse the existing workflows in the public institutions and to propose suitable RPA technology solutions. The next step shall be the launch of the call for the institutions wishing to benefit from RPA solutions.

The implementation of the investment shall be completed by 31 December 2025.

Investment 19. Schemes to upskill/reskill employees in firms

The objective of this investment is to support the digital transformation of small and medium sized enterprises by increasing the digital skills of their employees.

The investment shall be implemented in several phases. At first, a curriculum for upskilling workforce shall be developed. The focus shall be on emerging technologies (such as internet of things, big data, machine learning, artificial intelligence, robotic process automation, blockchain). In the second phase, a consultant shall support the administration in setting out the structure of the training and then the classes shall take place for the employees of the SMEs that have applied to be part of the programme.

The implementation of the investment shall be completed by 31 December 2025.

G.4.    Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

188

Investment 18. Digital transformation and Robotic Process Automation in public administration

Target

Robotic Process Automation (RPA) and promotion of Artificial Intelligence (AI) implemented in public administration

 

Number

0

18

Q4

2025

This investment shall implement solutions to support Robotic Process Automation and artificial intelligence for 18 public institutions of the central administration.

189

Investment 19. Schemes to upskill/reskill employees in firms

Milestone

Launch of the call for ‘Grant Support for Digital Skills’

Publication of the call

Q1

2022

Call for grants for supporting SMEs in training for digital skills such as digital tools and equipment, strengthening digital skills, including skills related to cloud technologies, and technologies specific to Industry 4.0.

190

Investment 19. Schemes to upskill/reskill employees in firms

Target

SMEs financed for training their staff in digital skills

 

Number

0

2 000

Q4

2025

Number of SMEs financed to support their employees towards participating in training for digital skills in line with milestone 189.

H.COMPONENT 8: Tax and Pensions reforms

This component includes a set of reforms and investments to address the key challenges in the tax administration, tax system, government budgetary framework, pension system and government support to businesses:

I.Reform of the tax administration and review of the tax framework to strengthen the tax system and to increase the revenue collected by the tax administration by at least 3pps of GDP (2,5pps from the tax administration reform and 0,5pps from the tax framework review) and to reduce the VAT gap by at least 5pps, both as compared to 2019.

II.Reform of the public pension system through a new legislative framework to ensure fiscal sustainability in an environment of ageing population, to correct inequities, to ensure the sustainability and predictability of the system and respect the contributory principle in relation to the beneficiaries of pension entitlements. It also aims at the modernisation of the pension system through digital applications and services. The public pension reform aims at addressing relevant country-specific recommendations (country specific recommendation 2.2 and 2.3, 2019), and in particular ensuring fiscal sustainability, equalisation of retirement age and financial stability of pension pillar II.

III.The enhancement of the efficiency of public spending, by increasing the transparency of the budget process, improving the monitoring and reporting system of the budgetary programmes, prioritising large investment projects, carrying out spending reviews in all public sectors, strengthening the role of the fiscal council. The digitalisation of the budgetary procedures is expected to support these goals.

IV.Enhancing institutional capacity to forecast pension expenditure through the use of complex economic modelling tools. The main aim of the reform is to develop the capacity to estimate the impact of structural reforms of the pension system in the medium to long term, by significantly improving the accuracy of the projections and thereby assessing the implication for the sustainability of the pension system.

V.Increasing competitiveness, innovation capacity, productivity and internationalisation of business (especially SMEs) by providing alternative sources of funding through the establishment and operationalisation of a National Development Bank.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

H.1.    Description of the reforms and investments for non-repayable financial support

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

This reform addresses the urgent need for modernisation and digitalisation of ANAF so as to make the tax collection more efficient with the objective to increase the revenue-to-GDP ratio (by 2,5 percentage points by Q4 2025 as compared to 2019) and to decrease the VAT gap (by 5 percentage points by Q2 2026 as compared to 2019). The reform aims at creating the procedural and supporting framework for the implementation and use of integrated risk management at tax administration level by all functions of the administration to set up a system to identify, plan, assess and adapt activities in the tax administration process according to identified (continuously updated) tax risks.

Specifically, the reform comprises the following elements:

-entry into force of the legal framework for the compulsory enrolment of corporate taxpayers in SPV (Virtual Private Space). This act shall amend the Fiscal Procedure Code and shall introduce the obligation for legal persons to enrol in the SPV.

-entry into force of the legal framework defining the risk criteria for the classification of taxpayers through an Order of the ANAF President. This is the first step towards fully operationalising and developing an integrated tax risk management system, including through the operationalisation of the centralised risk analysis and of a centralised electronic risk register. The definition of risk criteria shall be done according to the main categories of risks of tax non-compliance, i.e.: risks related to tax registration, submission of declarations, level of declaration, and payment and take into account international standards. The new risk criteria shall feed into a system of risk-based tax administration, in which tax administration measures and controls shall be adapted to the tax risk of each class of taxpayers.

-entry into force of the amended legal framework in the field of activity of tax inspection bodies, aiming at strengthening the capacity and effectiveness of tax control structures to prevent national and cross-border tax fraud and tax evasion by early and targeted identification of major tax risks. Part of the changes in the legal framework were implemented in 2020. This establishes the powers of the tax authorities (tax inspection bodies, anti-fraud control bodies, and bodies responsible for verifying the personal tax situation) to carry out documentary checks. ANAF is going to carry out analysis of the institutional and legal framework of the activities of the control structures. Taking into account the conclusions and the results of this analysis, the revision of the legal framework of the tax inspection bodies shall be finalised. This reform shall also strengthen the cooperation with labour inspectorates, as well as with other institutions in the field of social and labour protection, to prevent and limit the phenomenon of grey/black work tax evasion.

This reform shall also lead to having at least 600 000 cash registers connected to ANAF system, an increase in the share of desk audits as compared to the onsite ones, and to an increased number of tax inspections.

The implementation of the reform shall be completed by 31 December 2025 and is underpinned by three investments.

Reform 2. Modernisation of the customs system and implementation of electronic customs

The reform shall improve the functioning of the Customs Administration through promoting amendments to the existing legal framework, changing competences and internal procedures and by investing in equipment necessary for the control activity on the national territory and at the external border of the EU.

The objective of this reform is to improve the administrative and operational capacity of the Customs administration and to steer the customs clearance activity towards a fully electronic environment. The exchange of information between economic operators and customs authorities, as well as between customs authorities in the Member States, shall be carried out exclusively through electronic data processing and dissemination techniques.

In particular, the following actions shall be carried out:

-operationalisation of the customs administration,

-development of customs IT systems in line with the requirements of the Union Customs Code;

-focusing customs clearance on the electronic environment and reducing bureaucratic barriers;

-simplification of customs formalities.

The implementation of the reform shall be completed by 31 December 2023 and is underpinned by one investment.

Reform 3. Improving the budgetary programming mechanism

This reform shall be implemented through the entry into force of the amended regulatory framework which shall:

-ensure multi-annual budgetary planning,

-make the prioritisation of public investment more efficient,

-introduce systematic spending reviews aligned with the budgetary cycle and with a clear implementation plan of the findings in the subsequent budgets, and subject to independent ex-post evaluations.

One objective of this reform is to improve the budgetary programming mechanism and to modernise the IT system for the development and management of the national budget, by making extensive use of data and information that best reflect budgetary expenditure, at policy and programme level (analysis of budgetary procedures, streamlining of time to generate reports and the format in which reports are generated), with an effect on:

-increasing transparency in the budget process by publishing analyses and reports that simplify the spending process for specific programmes;

-improving the system for monitoring and reporting budgetary programmes.

The implementation of the reform shall be completed by 31 March 2025 and is underpinned by one investment.

Reform 4. Review of the tax framework

A review of the tax system should allow Romania to improve competitiveness, while supporting fiscal sustainability and environmental goals. It should also bring a fairer, more efficient, simpler and more transparent tax system capable of better supporting the economy and facilitating taxpayers’ compliance.

The comprehensive review of the tax system in the plan shall identify distortions and areas where relevant tax legislation should be adjusted, in particular for corporate income tax, income tax and social security contributions as well as property taxation, so as to inform decisions for a gradual withdrawal of excessive tax incentives. The review of the tax framework shall also aim at expanding green taxation, including as flanking measure for the sustainable transport and energy components.

In carrying out this reform, Romanian tax legislation shall be subject to a thorough analysis, with support of technical assistance provided by an independent institution, in particular in the areas of taxes and social contributions due on income earned by natural persons, corporate tax (including special schemes which may benefit from the exceptions), property taxes (which are local taxes) and green taxes. This systematic analysis shall be followed by the implementation of the recommendations stemming from it to ensure that the tax system better promote sustainable economic growth.

Specifically regarding property taxes, the reform shall address the potential arbitrage between the two tax systems applicable respectively to natural and legal persons earning income from immovable property, and to automatically determine the taxable value of properties subject to local tax, discontinuing the practice of using a taxable base which is not linked to the market value.

The specific objectives of this reform are to:

-improve the structure of tax revenues;

-increase the tax revenue to GDP ratio by 0,5 percentage points by 2025 as compared to 2019;

-eliminate distortions and loopholes in the tax system that allow taxpayers to minimise taxes (undermining the fairness of the system), in particular income tax and social contributions;

-simplify tax rules to facilitate compliance and administration, and elimination of preferential exemptions and treatments;

-achieve a more efficient tax system and a fairer distribution of the tax burden;

-amend property taxation, including in particular by encouraging the free imposition of allowances by local authorities within centrally defined ranges and estimating the tax base as close as possible to the market value of the property.

The implementation of the reform shall be completed by 31 March 2025 and is underpinned by one investment.

Reform 5. Establishment and operationalisation of the National Development Bank

The objective of the reform is to operationalise the National Development Bank (BND) in order to directly address financial market failures, by providing financing to projects of eligible beneficiaries with a high risk profile but with high potential to create added value and jobs and for which the private sector has little appetite to secure financing. The reform follows on a project financed under the Structural Reform Support Programme.

The National Development Bank shall be established as a 100% state-owned credit institution operating under the supervision of the National Bank of Romania and in accordance with applicable local and EU legislation. The National Development Bank shall have a share capital of RON 3 billion (ca. EUR 600 million).

The operationalisation of the BND shall also include the acquisition of an IT system, purchases of software licences and hardware as well as IT services.

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the investment and lending strategy of the National Development Bank shall:

-require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

-exclude the following list of activities and assets from eligibility by way of an exclusion list: (i) activities and assets related to fossil fuels, including downstream use; 14  (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks; 15 (iii) activities and assets related to waste landfills, incinerators 16 and mechanical biological treatment plants 17 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment; and

-require the verification of legal compliance with the relevant EU and national environmental legislation by the National Development Bank for all transactions, including those exempted from sustainability proofing; and

-require beneficiaries of equity support and general purpose corporate finance that derive more than 50% of their revenues during the preceding financial year from activities and/or assets in the exclusion list to adopt and publish green transition plans.

This reform is underpinned by an investment and its implementation shall be completed by 30 June 2026.

Reform 6. Reform of the public pension system

The reform involves the adoption of a new law on the public pension system, with the input of technical assistance, which is going to replace the Law 127/2019. One aim of the new legislation shall be to maintain total gross public pension expenditure (including all existing public pension schemes) stable in the long term (2022-2070) at 9,4% of GDP, including a brake mechanism in case the expenditure cap is exceeded.

The new legislation shall:

-introduce a new calculation formula for new pensions and pensions in payment. The parameters of the formula shall be carefully chosen in line with the target for pension expenditure as percentage of GDP. Moreover, they shall not allow for ad hoc increases on pension levels;

-introduce a new pension indexation rule in line with the pension expenditure as percentage of GDP target and mechanisms against ad hoc indexation;

-significantly reduce possibilities for early retirement, introduce incentives to expand the working life and to voluntary increase standard retirement age up to 70 years in line with the increases of life expectancy, and equalize the statutory retirement age for men and women at 65 years by 2035;

-introduce incentives for postponing retirement;

-revise special pensions to bring them in line with the contributory principle;

-strengthen the contributory principle of the system;

-increase the adequacy of minimum and lower pensions, in particular for those below the poverty threshold;

-ensure financial viability of the Pillar II of the pension system by increasing contributions to this pension pillar.

The government shall seek for technical assistance to prepare the draft law, which shall also be subject to consultation with social partners. As part of the preparation of the law, there shall be an ex-ante assessment of the impact of the new pension system in particular on fiscal sustainability, which shall feed in the reform process. Amendments to the draft law, which increase the cost of the reform and result to deviation from the fiscal target shall be accompanied by compensating measures to maintain the expenditure to GDP ratio stable. The recalculation of pensions shall be in line with the new legal framework and shall not increase total gross public pension expenditure beyond the benchmark of 9,4% of GDP.

An analysis of special pensions shall also be carried out with a view to identifying concrete solutions aimed at streamlining special pensions, and at correcting the inequities between beneficiaries of these pension categories and beneficiaries of the public pension system from the point of view of the contributory aspect, also taking into account the case-law of the Constitutional Court.

Technical assistance is envisaged (through a public tender) to produce ex-ante analysis of the pension reform, to elaborate the legislation of the reform, and to produce an ex-post analysis and impact assessment.

The implementation of the reform shall be completed by 30 March 2023.

Investment 1. Facilitating taxpayers’ compliance through the development of digital services

The objectives of this investment are:

-reducing face-to-face interaction with taxpayers due to the expansion of digital services and the provision of services to taxpayers at the premises of the tax units as a matter of priority in the self-service system; ensuring the digital inclusion of taxpayers; 

-the development of current remote (electronic or telephone) services through new functionalities and/or the creation of new services; 

-simplification of the forms, their electronic transposition and the introduction of pre-filled forms/abolition of reporting obligations, where possible; 

-improving communication with taxpayers and introducing an advisory mechanism on the services offered to taxpayers, which shall allow for the involvement of certain categories of taxpayers from the moment of the creation of the new services, so that the needs, expectations, possibilities and skills of taxpayers are known from the conception and design phase. 

The investment shall consist of the following actions:

-centralisation of the system managing the corporate taxpayers

-redesign and optimisation of the information system — VIES_RO (Value Added Tax Information Exchange System);

-implementation of the One Stop Shop (OSS_RO) IT system in accordance with intra-Community, national and specific customs requirements;

-the development of call centres;

-the development of current remote (electronic or telephone) services through new functionalities and/or the creation of new services;

-implementation of facilities for interaction with taxpayers at the premises of the tax units;

-implementation of a suite of solutions for knowledge of taxpayers/clients;

-set up of an online auction platform for valuing real estate and mobile assets of significant value.

The contracting of technical assistance services is envisaged for the preparation and completion of the procurement documentation to be carried out within the framework of the projects and for their implementation.

The implementation of the investment shall be completed by 31 December 2024.

Investment 2. Improving tax and tax administration processes, including through the implementation of integrated risk management

The objectives of this investment are:

-fully operationalising and developing the integrated tax risk management system, including through the operationalisation of the centralised risk analysis and register;

-identifying and reducing tax non-compliance and tax gaps through the smart use of data and information to identify areas of high fiscal risk (including in the area of undeclared/under-declared work);

-introducing voluntary compliance programmes;

-adopting a risk-based approach, including the treatment of tax optimisation schemes, in the administration of large taxpayers;

-strengthening the institutional capacity of tax control structures to prevent national and cross-border tax fraud and tax evasion by early and targeted identification of major tax risks;

-re-organising human resources in the context of the progressive digitalisation of business processes.

The investment is expected to have an impact on increasing the level of tax compliance, ensuring a competitive market environment by reducing tax avoidance and evasion and on the achievement of the planned budget revenue by increasing the efficiency of the collection.

The investment consists in the following actions:

-deployment of a platform for the exploitation of data and information;

-implementation of the e-invoicing system;

-implementation of the electronic fiscal marking system;

-improvement and expansion of the platform used for international information exchange;

-centralisation of the State Treasury Information System (TREZOR).

The implementation of the investment shall be completed by 31 December 2025.

Investment 3. Ensuring the capacity to respond to current and future information challenges, including in the context of the pandemic, through the digital transformation of Ministry of Finance / National Agency for Fiscal Administration

The objectives of this investment are:

-implementation of a financial hub to collect, manage and make available to all stakeholders reliable, validated and current information of a financial nature or in relation to public money;

-ensuring the interoperability of IT systems both at the Ministry of Finance (MF) and National Agency for Fiscal Administration (ANAF) level and with those of other institutions;

-application standardisation and uniform data management;

-cybersecurity management and data resilience, including sharing data in real time in a secure manner and with accurate/up-to-date data;

-modernisation and adaptation of the National Centre for Financial Information (NCFI) to new requirements, internal digital transformation, including dematerialisation of internal workflows at MF/ANAF level, ensuring flexibility in hours and jobs, increasing skills levels, including digital skills of employees;

-modernisation of the whole Ministry of Finance/ANAF IT system through a technological upgrade, which shall be implemented by shifting hardware and software infrastructure to new technologies, increasing the number of IT equipment used in the administration, linked to automated processes, and developing the necessary supporting infrastructure to support continuous technological development at the level of the Ministry of Finance data centres.

The investment consists in the following actions:

-upgrading hardware software and communication infrastructure of the IT system;

-reinforcing cybersecurity of the Ministry of Finance IT system;

-implementation/upgrading of the underlying physical infrastructure (electro-power, air-conditioning, alarm and fire extinguishing, physical security, administration and monitoring) in the main existing data centre

-internal digital transformation, including modernisation of the National Centre for Financial Information (NCFI), amongst which the digitalisation of the monitoring of public-private partnership/concession projects and of the management of related tax risks and the State’s public and private heritage information system — Patrim.

The implementation of the investment shall be completed by 31 December 2025.

Investment 4. Implementation of electronic customs

To modernise the customs system and implement electronic customs, the government shall invest:

-on the operationalisation of the Customs Authority.

-to equip border customs offices with scanners.

-on software hardware infrastructure to increase processing and storage capacity for applications established by DG TAXUD.

-on the upgrade and licensing for virtualised infrastructure and implementation of a virtualisation platform with administration and automation included.

-on the Security Solution for the IT infrastructure of the Integrated Customs Information System, including support services, licences and subscriptions

-on licences for databases necessary for the operation of the components of the Integrated Customs Information System

-on solutions for the centralised management of users, workstations and update services for the operating systems for the Integrated Customs Information System

-on the implementation of the IT system on the customs declaration with reduced dataset for low-value consignments, following the entry into force on 1 July 2021 of the new legislative provisions implementing the “VAT e-commerce package”, with the aim of facilitating cross-border trade and combating VAT fraud.

-on the ICS2 system — Phases 1, 2 and 3

-on the implementation of NCTS_RO Phase 5 and AES_RO

-on the alignment of the EMCS_RO system to EMCS Phase 4

-on the Modernisation of the National Import System in the framework of the Union Customs Code

-on the EU Single Window for Customs — CERTEX

-on the Uniform User Management and Digital Signature UUM & DS

-on the system for monitoring customs supervision and control

-on the Application for Authorisation and Management of Activities in the Free Zone

-on the Application for the Management of National Decisions (Authorisations)

The implementation of the investment shall be completed by 31 December 2025.

Investment 5. Improving the budgetary programming mechanism

The objective of this investment is to evaluate, update and modernise the IT system (BUGET_NG) for the development and management of the national budget, by making extensive use of data and information that best reflect budgetary expenditure. The investment shall reduce the time to generate reports and shall optimise the format in which reports are generated. This shall also increase transparency in the budget process by publishing analyses and reports that simplify the spending process for specific programmes. The investment shall also improve the system for monitoring and reporting budgetary programmes.

The implementation of the investment shall be completed by 31 December 2023.

Investment 6. Economic modelling instrument (Pension Reform Options Simulation Toolkit) to improve institutional capacity to forecast pension expenditures

The objective of this investment is to develop the capacity to estimate the impact of structural reforms of the pension system in the medium to long term, by significantly improving the projections made and analysing the sustainability of the pension system. In particular, this investment aims to optimise the functioning of the model, the development and enhancement of the capacity to use it and to analyse results achieved and to prepare information provided to the European Commission. The implementation of this measure requires the Ministry of Finance to expand its team using the model from 1 to 8 experts (already existing staff) and technical assistance for updating/developing the model, train the staff on the use of the tool and on improving the transmission of information to the European Commission and to Eurostat.

The investment shall include technical assistance from the World Bank to:

-update/develop the Pension Reform Options Simulation Toolkit model according to the characteristics of the Romanian pension system.

-customize the model so as to generate results compatible with the Aging Report and the Accrued-to-Date Liability (ADL) calculation regularly requested by the European Commission.

-Receive training sessions / workshops

-Realise/interpret the ex-ante impact of the pension system reforms

-Produce analytical reports, including proposals to improve the sustainability of the pension system.

The implementation of the investment shall be completed by 31 December 2023.

Investment 7. Technical support for the revision of the taxation framework

The revision of the property tax principles has, amongst its objectives, the automatic valuation of properties subject to local tax for taxation purposes. This measure shall be implemented with the support of a consultancy service (technical assistance needed for the elaboration of the terms of reference of the consultancy who shall develop the IT tool) by creating an IT system to automate the valuation of immovable property for the purpose of determining the tax base using information available in the systems of other institutions (e.g. the Land and Land Registry Agency, local authorities) as well as public information (e.g. property announcements, catalogues used by valuation professionals, statistical data).

The implementation of the investment shall be completed by 31 December 2023.

Investment 8. Operationalisation of the National Development Bank

The achievement of the objectives of the related reform requires investments in purchase of software (licences) and hardware (laptops), IT services for staff initially estimated at around 165 people, training of the staff of the National Development Bank to carry out the operations and of the Ministry of Finance staff involved in the assessment of the activity and performance of the bank.

The training of National Development Bank staff shall aim at enhancing the knowledge, professional skills and building technical competencies of personnel for the implementation of 3 new financial products from the following categories: debt, guarantee and equity. The consultant shall propose the structure/design of products, draft agreements/ contracts with beneficiaries, identify target beneficiaries, distribution channels, procedure, policies, communication plan and guidelines for new products. The ministry staff shall be trained in order to develop the required skills to analyse, monitor and assess the performance of the development bank.

The implementation of the investment shall be completed by 31 December 2024

Investment 9. Supporting the process of assessing pension files

The objective of this investment is to support the digitisation of the around 5 million pension files currently in different archives and formats in a single database. The digital files shall be used to assess the existing pension files and to consider the recalculation of some pensions based on the new legislation. The new database shall also be used for the provision of digital services to citizens, businesses and state institutions and for the assessment of relevant policies.

The investment shall be supported by the procurement of IT and non-IT equipment and the hiring of temporary personnel for a maximum period of 18 months to work on the data collection and processing.

The implementation of the investment shall be completed by 31 December 2023.

Investment 10. Operational efficiency and advanced e-services through digitalisation of the pension system

The objective of the investment is to establish and upgrade electronic systems and platforms of the National House for Public Pensions (CNPP), which is the national public pension agency. These systems shall allow the internal digitalisation of the authority and the provision of personalised public services to external actors (citizens, institutions, government) based on digital identity and remote access. The system shall also support government decision making through the implementation of complex systems and solutions for historical data analysis and ensure interoperability and cybersecurity. This investment shall also allow the upgrade of the digital skills of the CNPP staff.

The investment shall be implemented by conducting public procurement procedures for contracting the rewriting and re-licensing services of Horizon, Diafix and Domino systems, in order to support the legislative reforms, the provision of Client hardware infrastructure (PCs, multifunctional network), the Communication and Security Components at Territorial Pension Funds (CTP) and central level, the development of “CNPP Virtual Private Spaces for every citizen” services.

To ensure interoperability, the investment shall include the development of modern and secure mechanisms for the interconnection of IT systems through registry technologies, interoperability hub, service-based architecture for data exchange.

The implementation of the investment shall be completed by 31 December 2024.

H.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Seq. Num.

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators
(for milestones)

Quantitative indicators
(for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

191

Reform 1.

Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Milestone

Entry into force of the legal framework for the compulsory enrolment of legal person taxpayers in SPV (Virtual Private Space)

Provision in the law indicating the entry into force of the compulsory enrolment of legal person taxpayers in SPV

Q1

2022

Entry into force of the legal framework for making registration in the Virtual Private Space (SPV) compulsory for all legal persons taxpayers.

This act shall amend the Fiscal Procedure Code and shall introduce the obligation for legal person to enrol in the SPV.

192

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Target

Additional legal person taxpayers enrolled in SPV

Number

509 79

1 009 679

Q4

2022

At least 500 000 legal person taxpayers additionally enrolled in SPV compared to the 509 679 at the beginning of April 2021. With these additional 500 000 taxpayers, the SPV shall cover 90% of the total number of large taxpayers (according to the new definition that shall be available as soon as the modification of the respective legal framework shall be approved), accounting for at least 90% of the large taxpayer tax base. At this stage out of the approximately 1 500 000 legal entities approximately 400 000 are either in insolvency proceedings or inactive. The target of the measure is thus almost all registered legal entities to use the SPV.

The monitoring of the number of new taxpayers enrolled in the SPV shall be done through specific reports resulting from the query of databases by National Centre for Financial Information.

193

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Milestone

Entry into force of the applicable legal framework defining the risk criteria for the classification of taxpayers. The legal framework shall be approved through an Order of the ANAF President.

Entry into force of the Order of the ANAF president defining risk criteria

Q4

2022

The definition of risk criteria shall be done according to the main categories of risks of tax non-compliance: risks related to tax registration; submission of declarations; level of declaration; payment. These definitions shall be used in the system of tax-risk administration based on tax risk classes, in which tax administration measures and controls shall be adapted to the tax risk of each class of taxpayers.

The risk criteria shall take into account the following international standards:

- OECD ISO 31000:2018

- COM - Compliance Risk Management guide for Tax administrations 2010

- FTA Guidance Note for Evaluating the effectiveness of the compliance risk treatment strategies

194

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Milestone

Entry into force of the amended legal framework in the field of activity of tax inspection bodies

Provision in the law indicating the entry into force of the legal framework affecting the scope of activity of the tax inspection bodies

Q4

2022

The new law shall establish/revise the powers of the tax authorities tax inspection bodies, anti-fraud control bodies, and bodies responsible for verifying the personal tax situation), with the aim to strengthen the institutional capacity of tax control structures, to prevent national and cross-border tax fraud and tax evasion by early and targeted identification of major tax risks.

ANAF shall review the institutional and legal framework of the activities carried out by the control structures. Taking into account the conclusions and the results of the analysis, the revision of the legal framework of the tax inspection bodies shall be finalised.

195

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Milestone

Operationalization/approval of the Joint Action Plan between the National Agency for Fiscal Administration and Labour Inspection to prevent and limit the phenomenon of grey/black work evasion

Adoption of the Joint Action Plan between the National Agency for Fiscal Administration and Labour Inspection of actions to be taken to prevent and limit the phenomenon of grey/black work evasion

Q1

2022

Subsequent to the cooperation protocol with the Labour Inspection, a joint action plan shall be drawn up to include economic operators with high fiscal risk and also risk from the perspective of using under declared / unreported work.

It shall be broken down by types of seasonal activities, where the incidence of the mentioned risks is known to be high.

Periodically, the management of the structures involved (Tax Antifraud General Directorate and the Labour Inspection) shall analyse the results obtained as well as the possibilities and perspectives for updating the plan, depending on the results found.

196

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Target

Increase the share of revenues collected by the tax administration by at least 2,5 percentage points of GDP

Percentage points of GDP

2,5

Q4

2025

The share of tax revenues increases by at least 2,5pps of GDP, compared to the level observed in 2019

197

Reform 1. Reform of the National Agency for Fiscal Administration (ANAF) through digitalisation

Target

Reduction of the VAT gap by 5 percentage points

Percentage points

5

Q2

2026

The VAT gap is reduced by 5pps, compared to its level in 2019

198

Reform 2. Modernisation of the customs system and implementation of electronic customs

Entry into force of the amendments to the existing legal framework to improve the functioning of the Customs administration

Provision in the law indicating the entry into force of the amendments to the existing legal framework to improve the functioning of the Customs administration

Q4

2025

The objective of the reform is to improve the administrative and operational capacity of the Customs administration and to steer the customs clearance activity towards a fully electronic environment. The reform shall also operationalise the electronic customs system after the deployment of the relevant IT systems. In particular, the following actions shall be carried out:

-development of customs IT systems in line with the requirements of the Union Customs Code;

-focusing customs clearance on the electronic environment and reducing bureaucratic barriers;

-simplification of customs formalities.

199

Reform 3. Improving the budgetary programming mechanism

Milestone

Entry into force of the amended regulatory framework to ensure multi-annual budgetary planning for the significant public investment projects and have an ex-post evaluation of expenditure reviews made by the Fiscal Council

Provision in the law indicating the entry into force of the amendments to ensure multi-annual budgetary planning for the significant public investment projects

Q4

2022

The new regulatory framework shall amend:

- Law No nr.500/2002 on public finances, as amended, to lay down criteria and conditions for the budgetary construction of multiannual significant public investment projects, in particular expenditure on significant investment projects, so as to secure financing until their completion.

- Government Emergency Ordinance No nr.88/2013 on the adoption of certain fiscal and budgetary measures to meet commitments agreed with international bodies, and amending and supplementing certain legislative acts, as amended, which shall update the principles underlying the prioritisation of significant, new and on-going public investment projects in terms of financial affordability and sustainability, as well as economic and social justification; the timing of the process of prioritisation of significant public investment shall be updated in order to be linked to the timing of the annual and multi-annual budget preparation of the budget; conditions/sanctions shall be put in place for lead authorising officers who do not respect the timing and rules of the prioritisation of significant investments;

- Government Decision No nr.225/2014 approving methodological rules on the prioritisation of public investment projects, as amended, which shall amend the prioritisation criteria applicable to significant new and on-going public investment projects and thereafter, so that the budgeting is oriented towards the completion, as a matter of priority, of major investment projects in advanced phases of implementation.

200

Reform 3. Improving the budgetary programming mechanism

Milestone

Entry into force of the government decision for the approval of the methodology for drawing up, monitoring and reporting of the budgetary programmes

Provision in government decision indicating the entry into force of the legislative act for the approval of the methodology for drawing up, monitoring and reporting of the budgetary programmes

Q2

2022

The government decision act shall:

- ensure drawing up, monitoring and reporting of budgetary programmes

- improve performance-based budgetary planning and increase result-orientation,

- clearly define objectives, targets, results of actions, the impact of policies and indicators allowing both rigorous ex-ante debates on the public policies to be financed and a transparent and reasoned assessment of how the budgeted programmes have achieved public policy objectives and targets.

This government decision shall be linked to the revision of the budget_NG application.

201

Reform 3.

Improving the budgetary programming mechanism

Milestone

Completion of the spending review in health and education sectors

Publishing the analysis of spending in the fields of education and health

Q2

2023

The spending review in health and education sectors shall be carried out in three main steps:

1.Memorandum in the Government presenting the spending review on Health and Education

2.Establishment of thematic working groups with representatives of Ministry of Finance, Ministry of Health, National Health Insurances House/Ministry of Education

3.Collection of data, finalisation of analyses and presentation of results.

202

Reform 3. Improving the budgetary programming mechanism

Milestone

Adoption of a multi-annual strategy and calendar for a systematic expenditure review across all sectors

Memorandum approved by the Government and published

Q2

2023

Memorandum for approval by the Government shall be drafted by the Ministry of Finance, setting out the areas/programmes/actions which shall be the subject of future expenditure reviews, the timetable for implementation, the responsible institutions and the setting up of working groups for each area under consideration.

203

Reform 3.

Improving the budgetary programming mechanism

Milestone

2024 draft budgetary law includes the recommendations of spending reviews (health and education)

The draft budget includes the results of spending analyses in the areas of health and education

Q4

2023

The 2024 draft budget shall reflect the measures and proposals resulting from the spending reviews for health and education.

204

Reform 3.

Improving the budgetary programming mechanism

Milestone

Entry into force of the law for tasking the Fiscal Council with a regular impact assessment of spending reviews and the preparation of an implementation report

Provision in the law indicating the entry into force of the mandate of the independent institution

Q2

2024

A law shall provide the mandate to the Fiscal Council to issue an opinion on the outcome of the expenditure analysis starting with the 2024 budget, followed by reporting on a yearly basis. This regular review shall be anchored in the mandate of the fiscal council, to be enacted together with the changes in the fiscal law (milestone 199).

205

Reform 4. Review of the tax framework

Milestone

Analysis of Romania’s tax system with the objective to produce recommendations to ensure that the tax system contributes to promote and preserve sustainable economic growth

Completed analysis, publication of the report with the analysis and the recommendations, endorsed by/ co-authored with the independent institutions providing technical assistance

N/A

N/A

Q4

2022