Government Decision regarding the implementation of a state aid scheme stimulating investments with major impact on the economy

(Government Decision no 807 / 17 September 2014, published in the Official Gazette no. 714 on 30 September 2014)

Government Decision regards the implementation of a new state aid scheme focused on regional development through investments in any economic sector with a few exceptions specifically mentioned (e.g. steel sector, coal sector, shipbuilding sector, communications, transport, telecommunications, etc.).

The state aid consists in nonrefundable funds. The aim is to stimulate investments with significant impact on economy. The maximum intensity of the state aid and the maximum amount specified in the Decision by regions are as follows:

  • for investments in Bucharest: 15% but not more than EUR 11.25 mn for the period 2014 – 2017, and 10% but not more than EUR 7.5 mn for the period 2018 – 2020;
  • for investments in West and Ilfov regions: 35% but not more than EUR 26.25 mn;
  • for investments in other regions than the above mentioned: 50% but not more than EUR 37.5 mn. 

The eligible costs based on which the state aid is computed are the cost VAT excluded related to production or acquisition of tangible and intangible assets as well as the rental costs (within certain threshold) for buildings related to the initial investment. The tangible and intangible assets must cumulatively meet certain eligibility conditions specified in the Decision.

The eligibility criteria for the investment include:

  • The investment has to have at least a total value, VAT excluded, of RON 44 million (the equivalent of approximately EUR 10 million);
  • The investment must prove its economic efficiency and sustainability during implementation period and 5 years after its finalization according to the business plan;
  • The investment can not be started before receiving of the financing agreement from the Ministry of Public Finance (“MPF”).

Additional eligibility criteria regarding rentability, equity or related parties are specifically provided.

The evaluation of the financing applications and selection of the eligible investment projects will be performed by the representatives of MPF based on the documentation submitted by aplicants which includes, inter alia, a financing application, a business plan, an investment plan, etc.

MFP is required to publish on its website the date starting when financing applications can be registered and the annual budget allocated to the scheme.

Under this state aid scheme, financing agreements may be issued until 31 December 2020, the state aid payments being performed during 2015 - 2023. The maximum budget provided for this state aid scheme is of RON 2,700 mn (approximately EUR 600 mn), with the possibility of being supplemented, estimated number of beneficiaries being 150.