about us | newsletter | contact | archive | members area
Marius Vacaroiu, Policolor
Tax changes have made us elaborate more budget impact assessments this year»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

New law on ports administration would be very damaging for Romanian state budget, Fondul Proprietatea says

Fondul Proprietatea is concerned by the renewed steps to approve the draft law amending the Government Ordinance on ports administration, which was re-examined and approved through an emergency procedure by the Senate on 15 May, despite being declared unconstitutional in its entirety by the Constitutional Court on 28 February 2017.

2017-05-24 14:00:47

If implemented, the law would be very damaging for all of Romania's port administrations and the Romanian state budget, leading to tens of millions of euros in lost revenues for Constanta Port alone, the Fund says.

According to provisions in the draft law, the level of rent for port's land and infrastructure leased to operators who refuse to sign rental contracts should be fixed for a ten-year period at the level currently paid based on contracts for the so-called utilization of ports domain (UDP), which for example in Constanta Port varies between 0.22 RON and 0.36 RON per square meter per month.

Most of these contracts were concluded some 10-15 years ago, without any public tender, in un-transparent circumstances and the rents have remained largely unchanged ever since. By comparison, land available for logistic and industrial purposes in areas with significantly less attractive access to infrastructure around major cities in Romania are rented at levels several times those to be paid in Constanta Port if the law entered into force, a press release shows.

"Freezing the rents at the current minimum levels for the next 10 years will result in lost revenues of tens of millions of euros for Constanta Port alone, while also representing a dangerous precedent where a law is directly setting prices in contracts between two legal entities," said Greg Konieczny, Fondul Proprietatea CEO and Portfolio Manager. "This money could be put to better use through investments in Romania's ports rather than creating unfair benefits for private operators."

Fondul Proprietatea also claimed that this law will lead to a slowdown in the development of the ports.
"This is because many of the current operators - who do not have the willingness or financial strength to invest in new facilities or refurbish the existing ones - will have less incentive to give up the land they currently occupy at very low rents in very attractive parts of the ports to other operators with the means to develop them faster."

Moreover, in the form declared unconstitutional by the Constitutional Court, the law establishes a Supervisory Body, set up under the authority of the Competition Council, which would be responsible for approving all tariffs charged by Romania's ports and resolve all disputes between port administrations and port operators, according to the same source.

Fondul Proprietatea requires the Chamber of Deputies to reject the law, considering the negative impact it will have on the Romanian state budget and assets and its consequences on port administrations who would be denied the right to charge rents and other tariffs according to free market rules.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  8438 Views
Daily Info
Banca Transilvania has become a shareholder of Victoriabank

Banca Transilvania has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66 per cent alongside the Eu...

Rezidor to open a new Radisson Blu to open in Timisoara

The Rezidor Hotel Group announced the signing of the Radisson Blu Hotel, Timisoara. This takes the group’s portfolio in Romania to four hotels, with two in operation and two...

Mihai Tudose announces his resignation as prime minister

Mihai Tudose announced on Monday evening, at the end of the Social Democrat Party (PSD) National Executive Committee (CExN) meeting, that he resigns as prime minister of Roman...

Garanti Bank expects a four per cent GDP growth rate in 2018

Garanti Bank estimates that the growth rate of the gross domestic product (GDP) could reduce speed in 2018, to four per cent, from 6.5 per cent in 2017, mainly due to a slower...

Contract for the purchase of 227 Piranha V armored personnel carriers, signed in presence of PM Tudose

The contract for the purchase of 227 Piranha V armored personnel carriers was signed on Friday in the presence of Prime Minister Mihai Tudose, Deputy Prime Minister Marcel Cio...

 
 
   
advertising

advertising

advertising

advertising

advertising

More on News
Iohannis: Justice independence, public positions' integrity are constitutional values not to be negotiated

Promoting the rule of law and Justice independence, fighting against corruption, ensuring integrity in public positions and dignities are constitutional values that cannot ...

Contract for the purchase of 227 Piranha V armored personnel carriers, signed in presence of PM Tudose

The contract for the purchase of 227 Piranha V armored personnel carriers was signed on Friday in the presence of Prime Minister Mihai Tudose, Deputy Prime Minister Marcel ...

Mihai Tudose announces his resignation as prime minister

Mihai Tudose announced on Monday evening, at the end of the Social Democrat Party (PSD) National Executive Committee (CExN) meeting, that he resigns as prime minister of Ro...

Ministry of Public Finances set to issue Euro-bonds worth 8 billion Euro in the next two years

The Ministry of Public Finances (MFP) contemplates issuing Euro-bonds worth approximately 8 billion Euro (equivalent) over 2018-2019, in the context of the implementation o...

Garanti Bank expects a four per cent GDP growth rate in 2018

Garanti Bank estimates that the growth rate of the gross domestic product (GDP) could reduce speed in 2018, to four per cent, from 6.5 per cent in 2017, mainly due to a slo...

Garanti Leasing signs a loan agreement for 15 million Euro with EFSE

Garanti Leasing, part of Garanti Romania, has signed a loan agreement of 15 million Euro with the European Fund for Southeast Europe (EFSE). The facility is meant to increa...

EIB supports the modernisation of infrastructure in Oradea

The European Investment Bank (EIB) is lending 21 million Euro to the Municipality of Oradea to finance improvements to its urban infrastructure. EIB funds will also support...