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There are many advantages to public-private partnerships: various solutions for private financing of public projects, costs reduction for central and local authorities, usage of private know-how and management in public projects, or the increased efficiency in project development.”
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February 5 2013

The Department for Infrastructure Projects and Foreign Investment will coordinate PPP projects

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The Government Decision no. 7/2013 on the organization and functioning of the Department for infrastructure projects and foreign investment was published in the Official Journal no. 33 as of 15th of January 2013.
The normative act entered into force on 15th of January 2013 and abolished art. 2 of Government Decision no. 1.239/2010 approving the Methodological Norms for applying Law no. 178/2010 on public-private partnership and for the approval of several measures concerning the reorganization of the Central Unit for the Coordination of Public-Private Partnership within the Ministry of Public Finance.
Thus, the Department for infrastructure projects and foreign investment (hereinafter “D.I.P.F.I.”) is organized and operates as a specialized body of the central public administration, with legal personality, within the Government’s working apparatus.
D.I.P.F.I. will ensure the coordination of infrastructure projects of national interest, the preparation, the execution and the implementation of infrastructure projects designated to its competence by Government decision and will ensure the coordination of uniform application of government policy at central and local level, in order to stimulate, promote and implement foreign investment and public-private partnerships.
G.D. no. 7/2013 mainly stipulates for the following aspects:

  • D.I.P.F.I. main functions;
  • D.I.P.F.I. main tasks;
  • D.I.P.F.I management;
  • D.I.P.F.I. organizational structure;
  • D.I.P.F.I. financing;
  • units under the authority of D.I.P.F.I.;
  • D.I.P.F.I.’s patrimony.

D.I.P.F.I. MAIN FUNCTIONS
D.I.P.F.I. exercises, in accordance with current regulations, the following main functions:

  • strategy function, through which it ensures the development strategy of implementing the program of the Government and the governmental policy in the field of infrastructure projects of national interest, foreign investment and public-private partnerships;
  • regulatory function, through which it ensures the development of normative and institutional framework required to achieve the strategic objectives of the Government in the field of infrastructure projects of national interest, foreign investment and public-private partnerships;
  • state property management function, through which it ensures, in its areas of activity, both public and private management of state property;
  • representation function, through which it ensures, in its areas of activity, internal and external representation of the Government;
  • state authority function through which it ensures the compliance, monitoring and enforcement of regulations in the field of infrastructure projects of national interest, foreign investment and public-private partnerships, as well as in the field concerning the functioning of the entities and bodies that operate under its authority.

D.I.P.F.I. MAIN TASKS
For example, in performing its functions, D.I.P.F.I. has, inter alia, the following main responsibilities in the field of public-private partnerships:

  • provides direction and monitoring for the public partners and private investors interested in work organization and conduct of a public-private partnership project, under the law;
  • verifies each notice of intent or other supporting documentation submitted/sent by the public partner for publication in the Electronic System for Public Procurement (E.S.P.P.) and in the Official Journal of the European Union;
  • issues for the E.S.P.P. the permission for posting notices on public-private partnerships;
  • develops the national strategy for the promotion and implementation of PPP projects and subjects it to government approval;
  • monitors, checks and periodically reports to the Government the implementation of the national strategy for the promotion and implementation of public-private partnership projects;
  • establishes and promotes identification procedures and implementation of PPP projects and supports all public partners in preparing and implementing public private partnership projects;
  • organizes and manages the integrated public database of all public-private partnership projects;
  • updates and ensures the maintenance and operation of the processing, collection and management system of information and statistics on the progress of public-private partnership contracts at central and local level;
  • ensures and promotes the concept and projects of public-private partnership;
  • drafts, based on its own analysis and verification, synthesis documents relating to the conduct of public-private partnership projects;
  • participates, through its representatives, when invited by public partners, under the law in force, in the evaluation and negotiation committees established for selecting private investors and negotiating public-private partnership contracts;
  • identifies and provides nationwide dissemination of best practices in public-private partnership;
  • establishes contacts and keeps in touch on debates of investment through public-private partnership projects with governmental and nongovernmental organizations, as well as with foreign and domestic investors;
  • issues recommendations on structuring public-private partnership projects, considering the impact on the level of public sector lending and on the borrowing limits at national or local level;
  • monitors the evolution of the implementation of PPP projects and coordinates appropriate actions needed to implement them;
  • offers specialized consultancy to public partners and to interested investors in all phases of a public-private partnership project;
  • on its own behalf or for the benefit of another public entity, plans, prepares, assigns, negotiates, implements and monitors the implementation of public-private partnership contracts.

Also D.I.P.F.I. has responsibilities in the following areas:

  • in its general field of competence;
  • in the infrastructure projects for the national interest field;
  • in the foreign investment field.

D.I.P.F.I. MANAGEMENT
The management of D.I.P.F.I. is exercised by the minister for infrastructure projects of national interest and foreign investment, tertiary credit release authority.
Thus, the minister:

  • represents the institution in relations with public authorities, businesses and individuals in the country and abroad;
  • fulfills, in the fields of D.I.P.F.I.’s competence, accordingly, the general statutory duties stipulated by Law no. 90/2001 on the organization and functioning of the Romanian Government and ministries;
  • in the exercise of his attributions, issues orders and instructions;
  • in the leadership of the institution, the minister is assisted by a secretary of the state, appointed by the prime minister;
  • controls the activity of D.I.P.F.I and of the entities under its coordination or authority and verifies the fulfilment of duties by all the departments of its organizational structure and by all the units that are under its coordination or authority.

D.I.P.F.I. ORGANIZATIONAL STRUCTURE
D.I.P.F.I. has its own administrative apparatus, organized as general directions, directions, and services consisting of 77 offices and positions, dignitaries exclusively.
The staff necessary for carrying out D.I.P.F.I. activity consists of civil servants and contractual staff, who are nominated, respectively employed, under the law, up to the maximum number of positions approved.

PROJECT MANAGEMENT UNITS
In terms provided for by Government Emergency Ordinance no. 52/1999 on providing a unified framework for managing projects financed by external loans contracted or guaranteed by the state, reimbursable or non-reimbursable, including the payment of Romanian specialists who work in the project management units, approved by Law no. 172/2001, as amended, D.I.P.F.I. and the entities under its coordination or authority may establish, organize and manage the project management units through minister’s order.

FINANCING OF D.I.P.F.I.
The financing of D.I.P.F.I. activities is ensured from the state budget through the budget of the General Secretariat of the Government.

UNITS UNDER THE AUTHORITY OF D.I.P.F.I
The units under the authority of D.I.P.F.I. are provided for in Appendix no. 2 to G.D. no. 7/2013. Currently, the only unit under the authority of D.I.P.F.I is the National Company of Motorways and National Roads in Romania – S.A.

D.I.P.F.I.’S PATRIMONY
D.I.P.F.I.’s patrimony is formed by taking over the patrimony of the Central Unit for the Coordination of Public-Private Partnership and by taking over part of the patrimony of the Romanian Centre for Trade and Foreign Investment Promotion.
Within 45 days from the entering into force of the Decision, the personnel from the Romanian Centre for Trade and Foreign Investment Promotion and from the Central Unit for the Coordination of Public-Private Partnership will be taken over under the legal regime applicable to each category of staff within the limit of the number of positions approved.

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